Cummins, Daimler partner to produce engines

Cummins Inc. has announced a global partnership to produce medium-duty engine systems for 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.

The Columbus-based company said Tuesday it had signed a memorandum of understanding with Germany-based Daimler Trucks AG that includes producing medium-duty engine systems beginning in the second half of the decade, the companies said in a joint announcement.

As part of the partnership, Cummins will establish an engine plant in Germany to produce medium-duty engines for Mercedes-Benz, the companies said.

Cummins also said it will use its existing production and supply chain networks in other regions of the world for other Daimler Trucks brands, including those of Daimler Trucks North America.

Daimler Trucks includes brands Mercedes-Benz Trucks, Freightliner Trucks, Western Star, FUSO Trucks, BharatBenz Trucks and Thomas Built Buses, according to Daimler’s website.

“We are pleased to announce this important strategic partnership with Daimler to provide the medium-duty engine systems for Daimler Trucks and Buses in global markets,” Cummins Chairman and Chief Executive Officer Tom Linebarger said 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.”

Based in Stuttgart, Germany, Daimler’s trucks and buses division sold 378,500 vehicles worldwide in 2020, bringing in 34.7 billion euros (about $42.2 billion) in revenue, according to the company’s annual report. The division sold about 521,000 vehicles in 2019, including 488,521 trucks.

Daimler anticipates the partnership with Cummins will enable Daimler to increase and accelerate its efforts to develop alternative and emerging technologies, including non-diesel engines.

Daimler is aiming for all new vehicles in Europe, North America and Japan to be carbon neutral by 2039, according to the company’s annual report.

Next, Cummins and Daimler will evaluate a broader global strategic cooperation in areas such as powertrain components and engine system components, the companies said.

The announcement Tuesday came three weeks after Daimler AG announced it would rename itself Mercedes-Benz and spin off its truck business as a separate entity by the end of the year “to unlock the full potential of its businesses in a zero-emissions, software-driven future.”

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