Daimler Truck and Cummins have signed the framework agreement for a partnership for medium-duty commercial vehicle engines. The two companies announced in February their intention to enter into a partnership.
As part of this partnership, Cummins will invest in the further development of the medium-duty engine platform and its worldwide production and delivery from the second half of the decade for Daimler trucks and buses. Daimler Truck will no longer invest its own funds in the development of its medium-duty engines for the Euro VII emissions standard.
“We are very pleased to have been able to conclude negotiations of a framework agreement with Cummins so quickly. The cooperation prepares engine production at the Mannheim site for the future and at the same time strengthens our competitiveness. We will develop common solutions, always keeping in mind the interests of our customers, employees and the company ”, said Martin Daum, Chairman of the Board of Directors of Daimler Truck and Member of the Board of Directors by Daimler.
“We are delighted to sign this agreement as we move forward in the collaboration to deliver mid-duty engine systems to Daimler trucks and buses in global markets,” said Tom Linebarger, President and CEO of Cummins. “Our partnership is a tremendous opportunity for both companies to be more competitive, drive global innovation, expand customer offerings and reduce emissions. We look forward to working with Daimler on this topic and exploring other potential opportunities to grow our respective companies. “
Cummins will set up an engine production facility at the Mercedes-Benz plant in Mannheim, Germany, for the local production of medium-duty engines meeting the Euro VII emissions standard for Daimler trucks and buses. Production is expected to start in the second half of the decade.
Through this partnership, Daimler Truck and Cummins will help maintain jobs at the Mannheim site. Cummins will use its existing footprint, production and supply chain networks in other regions for the Daimler Trucks brands, including those of Daimler Trucks North America.