Eaton, Cummins to form a transmission joint-venture

11 April 2017

Eaton Corporation and Cummins announced an agreement to form a joint venture for automated transmissions for heavy-duty and medium-duty commercial vehicles. The joint venture will be named Eaton Cummins Automated Transmission Technologies.

Cummins and Eaton will each own 50% of the new joint venture. Under the agreement, Eaton will receive $600 million in cash from Cummins for 50% interest in the joint venture. The parties expect the transaction to close in the third quarter of 2017. Cummins will consolidate joint venture results as part of its Components business segment.

The global joint venture will provide industry-leading transmission technologies that deliver best-in-class fuel efficiency, performance and uptime while leveraging Cummins’ and Eaton’s global service and support networks, said the companies. The joint venture will design, assemble, sell and support all future medium-duty and heavy-duty automated transmissions for the commercial vehicle market. Eaton’s current medium-duty automated transmission, Procision®, and next generation heavy-duty automated transmissions, will be part of the joint venture. In addition, the joint venture will market, sell, and support Eaton’s current generation of automated heavy-duty transmissions to OEM customers in North America.

The joint-venture builds on the existing business relationship. Since 2013, Cummins and Eaton have partnered in the development of SmartAdvantage powertrain systems for heavy-duty trucks. The powertrains combine Cummins diesel engines with Eaton’s transmissions.

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.

Source: Eaton Corporation