Cummins Inc. announced some of the details of a global strategic partnership it recently reached with one of the world’s largest makers of trucks and buses as both companies look to accelerate the development of zero-emission technologies in the coming years.
In February, the Columbus-based company and Germany-based Daimler Truck AG signed a memorandum of understanding that included producing medium-duty engine systems beginning in the second half of the decade, the companies said in a joint announcement at the time.
On Thursday, Cummins and Daimler said the details of the agreement have now been established and the framework agreement has been signed by both companies.
Under the terms of the partnership, Cummins will invest in the further development of Daimler’s medium-duty engine platform and its global production, with delivery starting in the second half of the decade, according to the terms of the partnership.
Daimler, in turn, will no longer invest its own funds in the further development of its medium-duty engines for the new Euro VII emissions standard.
“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 Cummins Chairman and CEO Tom Linebarger in a statement. “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.”
Cummins will set up an engine production facility on the site of a Mercedes-Benz plant in Mannheim, Germany for local production of medium-duty engines that meet the Euro VII emissions standard for Daimler, according to the joint statement. Production is expected to start in the second half of this decade.
Cummins also said it will use its existing production and supply chain networks in other regions of the world for other Daimler Truck brands, including those of Daimler Trucks North America.
Daimler Truck includes brands Mercedes-Benz Trucks, Freightliner Trucks, Western Star, FUSO Trucks, BharatBenz Trucks and Thomas Built Buses, according to Daimler’s website.
