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.
Martin Daum, chairman of the board of management at Daimler Truck AG and a member of the board of management at Daimler AG said: "The memorandum of understanding between Daimler Truck AG and Cummins makes engine production at the Mannheim location fit for the future and at the same time strengthens our competitiveness. With the changeover to Euro VII, we would have to invest considerable resources in the further development of our medium duty engines. We are now freeing up these funds to focus them on the technologies that are crucial to our long-term corporate success in the transformation of our industry.”
Cummins will establish an engine plant within the Mercedes-Benz Mannheim campus to produce medium duty engines compliant with the Euro VII emissions standard for Mercedes-Benz and ensuring continued joint success in the medium-duty vehicle segment. Cummins will use its existing footprint and production and supply chain networks in all other regions for use in other Daimler Trucks brands, including those of Daimler Trucks North America.
Daimler says that in the future, it will focus on the further progression of zero-emission drive technologies as well as further development of commercial heavy-duty drivetrains.
In a next step, the partners 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 within 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.