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Daimler Truck and Cummins announce partnership for medium-duty engine systems

23 February 2021

Daimler Truck AG and Cummins Inc. have signed a memorandum of understanding establishing a global strategic partnership for medium-duty engine systems. The companies also said they evaluate other opportunities for collaboration.

As part of the planned strategic partnership, Cummins will invest in the further development of medium-duty engine systems for Daimler Trucks and Buses. The global production and delivery of medium-duty engines by Cummins for Daimler Trucks and Buses would begin in the second half of the decade.

Cummins will establish an engine plant within the Mercedes-Benz Mannheim campus, utilizing existing resources to produce medium-duty engines compliant with the Euro VII emission standards for Mercedes-Benz. With this partnership, Daimler Truck and Cummins will help maintain employment at the Mannheim plant, said Daimler in their press release. Cummins will also use its existing production and supply chain networks in other regions for use in other Daimler Trucks’ brands, including those of Daimler Trucks North America.

“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,” said Martin Daum, Chairman of the Board of Management at Daimler Truck. “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.”

The partnership with Cummins is expected to allow Daimler to accelerate its development efforts on alternative and emerging technologies, including non-diesel engines, the company said. In the future, Daimler Truck would focus on the progression of zero-emission drive technologies as well as development of commercial heavy-duty drivetrains.

The production of the current medium-duty engine generation (MDEG) by Daimler Truck will end with the start of production of the Cummins engines at Mannheim. In a next step, the partners said they 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 in the Daimler Truck AG portfolio. The HDEP engine family will continue to be manufactured by the global production network in Mannheim and Detroit, MI and fitted in heavy-duty trucks, in touring coaches as well as in third-party products worldwide.

Source: Daimler