The 50:50 JV will be named Eaton Cummins Automated Transmission Technologies and will design, assemble, sell and support all future medium-duty and heavy-duty automated transmissions for the commercial vehicle market.
Craig Arnold, Eaton chairman and CEO, says the partnership will “leverage the technical strengths and experience of two industry leaders”.
Tom Linebarger, chairman and CEO of Cummins, adds: “Our JV with Eaton will deliver the most advanced automated transmissions and develop an integrated powertrain and service network that supports our customers like never before.”
Eaton’s existing medium-duty automated transmission, Procision, and next generation heavy-duty automated transmissions will be part of the new business, which will sell Eaton’s current generation of automated heavy-duty transmissions to OEM customers in North America.
Eaton’s Vehicle Group will retain its global manual transmission business, global clutch business, current generation medium-duty and heavy-duty automated transmission business outside of North America, global aftermarket business, light-duty transmission business, agricultural transmission business, and global automotive business and associated product lines.
The formation of the JV is subject to regulatory approvals and is expected to be completed in Q3 2017.
Eaton will receive $600 million from Cummins for its 50% stake.