As formerly announced, Daimler Truck and Cummins set a global strategic partnership for medium-duty commercial vehicle engines. Following the recent announcement of a cooperation with Chevron in view of hydrogen technology, Cummins will invest in the further development of the medium-duty engine platform and its global production and delivery starting in the second half of the decade for Daimler Trucks & Buses. On the other hand, Daimler Truck will no longer invest its own funds in the further development of its medium-duty engines for the Euro VII emissions standard.
Daimler Truck and Cummins: the agreement involves production and jobs
The aforementioned medium-duty engines will be produced by Cummins on the German Mercedes-Benz site in Mannheim. Production is expected to start in the second half of the decade. This strategic partnership allows Daimler Truck and Cummins to maintain jobs at the Mannheim location. Cummins will use its existing footprint, strong production and supply chain networks in other regions to be successful in Daimler Trucks’ brands, including those of Daimler Trucks North America. Cummins has continued to grow its presence and footprint across Europe as it expands its product portfolio for customers ranging from advanced diesel, natural gas, electrified power, hybrids and hydrogen fuel cell powertrains.
Engine production ready for future challenges
«We are very pleased that we were able to conclude the negotiations for a framework agreement with Cummins so quickly. The cooperation makes engine production at the Mannheim location ready for the future and strengthens our competitiveness at the same time. We will develop joint solutions, always keeping the interests of our customers, employees and the company in mind», said Martin Daum, Chairman of the Board of Management at Daimler Truck and a member of the Board of Management at Daimler.
«We are pleased to sign this agreement as we move forward in collaboration to provide the medium duty engine systems for Daimler Trucks and Buses in global markets», said Tom Linebarger, Chairman and CEO of Cummins. «Our partnership is a terrific opportunity for both companies to be more competitive, drive global innovation, expand offerings to customers and reduce emissions. We are looking forward to working with Daimler on this and exploring other potential opportunities to grow our respective companies».