Daimler Truck AG and Cummins Inc. announced in February that they would enter a global strategic partnership for medium-duty engines. Now, details of the agreement have been established and the framework agreement has been signed by both companies.
Under the strategic partnership, 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. Daimler Truck AG will no longer invest its own funds in the further development of its medium-duty engines for the Euro VII emissions standard.
Cummins Inc. will set up an engine production facility on the site of the Mercedes-Benz Mannheim, Germany, plant for local production of medium-duty engines that meet the Euro VII emissions standard for Daimler Trucks and Buses. Production is expected to start in the second half of the decade.
With this strategic partnership, Daimler Truck AG and Cummins will help 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 said it 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.
As part of the partnership, the two companies will continue to evaluate additional opportunities for cooperation.