Daimler Truck AG and U.S.-based engine manufacturer Cummins Inc. have finalized a framework agreement to enter a global strategic partnership for medium-duty engines. Under the agreement, Cummin will set up an engine production facility on the site of the Mercedes-Benz plant in Mannheim , Germany, for production of medium-duty engines that meet Euro VII emissions for Daimler Trucks & Buses starting in the second half of the decade.
Daimler Truck AG will no longer invest its own funds in developing medium-duty engines for the Euro VII emissions standard.
“The cooperation makes engine production at the Mannheim location ready for the future and strengthens our competitiveness at the same time,” said Martin Daum, chairman of the Board of Management at Daimler Truck AG and a member of the Board of Management at Daimler AG. “
“We are pleased to sign this agreement as we move forward in collaboration to provide the medium duty engine systems for Daimler Trucks and Buses in global markets,” said Tom Linebarger, Chairman and CEO, Cummins Inc. “Our partnership is a terrific opportunity for both companies to be more competitive, drive global innovation, expand offerings to customers and reduce emissions.”