Daimler Truck AG and Cummins Inc. have signed a memorandum of understanding establishing a partnership for medium-duty engine systems. The companies added that other opportunities for collaboration are also being evaluated.
As part of the planned strategic partnership, Cummins will invest in the further development of medium-duty engine systems for Daimler Trucks and Buses and the global production and delivery of medium-duty engines by Cummins for Daimler Trucks and Buses beginning in the second half of the decade.
Cummins will establish an engine plant within the Mercedes-Benz Mannheim campus, using existing resources to produce medium-duty engines compliant with the Euro VII emissions standard for Mercedes-Benz. With this strategic partnership, Daimler Truck AG and Cummins say they will help maintain employment at the Mannheim plant. Cummins will use its existing footprint and production/supply chain networks in all other regions for use in other Daimler Trucks’ brands, including those of Daimler Trucks North America.
Daimler says it anticipates that the partnership with Cummins will allow Daimler to increase and accelerate its development efforts on alternative and emerging technologies, including non-diesel engines. In the future, Daimler Truck AG says it will focus on the further progression of zero-emission drive technologies, as well as further development of commercial heavy-duty drivetrains. The production of the current medium-duty engine generation by Daimler Truck AG will end with the start of production of the Cummins engines at Mannheim.
The partners say they will evaluate a broader global strategic cooperation through identifying potential synergies in areas such as powertrain components and engine system components.
The Daimler heavy-duty engine platform (HDEP) for the heavy-duty vehicle segment of Daimler Trucks and Buses will remain in the Daimler Truck AG portfolio. The HDEP engine family will continue to be manufactured by the global production network in Mannheim and Detroit, Michigan and fitted in heavy-duty trucks, in touring coaches as well as in third-party products worldwide.
