- The two companies announced a global strategic partnership for
medium-duty engines.
- Cummins Inc. will set up an engine production facility on the
site of the Mercedes-Benz plant in Mannheim for production of
medium-duty engines that meet Euro VII emissions for Daimler Trucks
& Buses starting in the second half of the decade.
- Cummins Inc. will supply medium-duty engines for Daimler Trucks
& Buses vehicles worldwide in the future.
Daimler Truck AG and U.S.-based global power leader and engine
manufacturer Cummins Inc. (NYSE: CMI) announced in February that
they would enter into a global strategic partnership for
medium-duty engines. The details of the agreement have been
established and the framework agreement has been signed by both
companies.
Under the strategic partnership, Cummins will invest in the
further development of the medium-duty engine platform and its
global production and delivery starting in the second half of the
decade for Daimler Trucks & Buses. Daimler Truck AG will no
longer invest its own funds in the further development of its
medium-duty engines for the Euro VII emissions standard.
“We are very pleased that we were able to conclude the
negotiations for a framework agreement with Cummins so quickly. The
cooperation makes engine production at the Mannheim location ready
for the future and strengthens our competitiveness at the same
time. We will develop joint solutions, always keeping the interests
of our customers, employees and the company in mind,” 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. We are looking
forward to working with Daimler on this and exploring other
potential opportunities to grow our respective companies.”
Cummins Inc. will set up an engine production facility on the
site of the Mercedes-Benz Mannheim, Germany plant for local
production of medium-duty engines that meet the Euro VII emissions
standard for Daimler Trucks and Buses. Production is expected to
start in the second half of the decade.
With this strategic partnership, Daimler Truck AG and Cummins
will help maintain jobs at the Mannheim location. Cummins will use
its existing footprint, strong production and supply chain networks
in other regions to be successful in Daimler Trucks’ brands,
including those of Daimler Trucks North America. Cummins has
continued to grow its presence and footprint across Europe as it
expands its product portfolio for customers ranging from advanced
diesel, natural gas, electrified power, hybrids and hydrogen fuel
cell powertrains.
As part of the strategic partnership, Daimler Truck AG and
Cummins Inc. will continue to evaluate additional opportunities for
cooperation.
The February 2021 press release with further details can be
found here.
Further information from Daimler Trucks is available online:
www.media.daimler.com and www.daimler-truck.com.
Forward-looking statements:
This document contains forward-looking statements that reflect
our current views about future events. The words “anticipate,”
“assume,” “believe,” “estimate,” “expect,” “intend,” “may,” ”can,”
“could,” “plan,” “project,” “should” and similar expressions are
used to identify forward-looking statements. These statements are
subject to many risks and uncertainties, including an adverse
development of global economic conditions, in particular a decline
of demand in our most important markets; a deterioration of our
refinancing possibilities on the credit and financial markets;
events of force majeure including natural disasters, pandemics,
acts of terrorism, political unrest, armed conflicts, industrial
accidents and their effects on our sales, purchasing, production or
financial services activities; changes in currency exchange rates,
customs and foreign trade provisions; a shift in consumer
preferences towards smaller, lower-margin vehicles; a possible lack
of acceptance of our products or services which limits our ability
to achieve prices and adequately utilize our production capacities;
price increases for fuel or raw materials; disruption of production
due to shortages of materials, labor strikes or supplier
insolvencies; a decline in resale prices of used vehicles; the
effective implementation of cost-reduction and
efficiency-optimization measures; the business outlook for
companies in which we hold a significant equity interest; the
successful implementation of strategic cooperations and joint
ventures; changes in laws, regulations and government policies,
particularly those relating to vehicle emissions, fuel economy and
safety; the resolution of pending government investigations or of
investigations requested by governments and the conclusion of
pending or threatened future legal proceedings; and other risks and
uncertainties, some of which are described under the heading “Risk
and Opportunity Report” in this Annual Report. If any of these
risks and uncertainties materializes or if the assumptions
underlying any of our forward-looking statements prove to be
incorrect, the actual results may be materially different from
those we express or imply by such statements. We do not intend or
assume any obligation to update these forward-looking statements
since they are based solely on the circumstances at the date of
publication.
Daimler Truck at a Glance
The Daimler Truck AG is one of the worldʼs largest commercial
vehicle manufacturers, with more than 35 primary locations around
the world and approximately 100,000 employees. The company brings
together seven vehicle brands under one roof: Mercedes-Benz (light,
medium and heavy trucks as well as city, intercity and touring
coaches) and Setra (intercity, long-distance and premium coaches)
are our traditional European brands; our U.S. brands Freightliner
Trucks (trucks in weight classes 5 to 8 for a wide range of
commercial vehicle applications), Western Star (heavy trucks for
specialized and long-haul transports) and Thomas Built Buses (light
to medium-duty buses); and our Asian brands Bharat Benz, based in
Chennai, India (trucks in the weight classes 10 to 55 t and medium
and heavy-duty buses) and FUSO with its headquarters in Japan
(trucks and buses for Asia, the Middle East, Africa, Europe and
Latin America). This allows the Daimler Truck AG to offer its
customers around the globe a broad spectrum of commercial vehicles,
ranging from minibuses to heavy-duty trucks for special-purpose
transport applications – in short: products and solutions for
everyone who keeps the world moving. Gottlieb Daimler and Carl Benz
laid the foundation for the modern transport industry 125 years
ago. Over the past decades, Daimlerʼs truck and bus divisions have
consistently set standards for the entire transportation industry –
in terms of safety, fuel efficiency and driver and passenger
comfort. It is now time for the next evolutionary step:
emission-free, automated and connected driving. Daimler Trucks
& Buses is working to bring these important technologies to
high-volume series production, across brands, divisions and
regions. In this way the company intends to take a major step
closer to realizing its vision of CO2-neutral transport and
accident-free driving whilst also contributing to the
sustainability of global goods and passenger transport. In 2020, a
total of 378,500 trucks and buses were delivered. In 2020 the
revenue of the individual areas of business amounted to € 35
billion for the Daimler Truck AG. The adjusted EBIT was € 678
million for the Daimler Truck AG.
Forward-looking disclosure statement
Information provided in this release that is not purely
historical are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including
statements regarding our forecasts, guidance, preliminary results,
expectations, hopes, beliefs and intentions on strategies regarding
the future. These forward-looking statements include, without
limitation, statements relating to our plans and expectations for
our revenues and EBITDA. Our actual future results could differ
materially from those projected in such forward-looking statements
because of a number of factors, including, but not limited to: any
adverse results of our internal review into our emissions
certification process and compliance with emission standards;
increased scrutiny from regulatory agencies, as well as
unpredictability in the adoption, implementation and enforcement of
emission standards around the world; policy changes in
international trade; the U.K.'s exit from the European Union;
changes in taxation; global legal and ethical compliance costs and
risks; increasingly stringent environmental laws and regulations;
future bans or limitations on the use of diesel-powered products;
supply shortages and supplier financial risk, particularly from any
of our single-sourced suppliers, including suppliers that may be
impacted by the COVID-19 pandemic; market slowdown due to the
impacts from the COVID-19 pandemic, other public health crises,
epidemics or pandemics; impacts to manufacturing and supply chain
abilities from an extended shutdown or disruption of our operations
due to the COVID-19 pandemic; aligning our capacity and production
with our demand, including impacts of COVID-19; large truck
manufacturers and original equipment manufacturers customers
discontinuing outsourcing their engine supply needs or experiencing
financial distress, particularly related to the COVID-19 pandemic,
bankruptcy or change in control; a slowdown in infrastructure
development and/or depressed commodity prices; failure to realize
expected results from our investment in Eaton Cummins Automated
Transmission Technologies joint venture; the actions of, and income
from, joint ventures and other investees that we do not directly
control; product recalls; the development of new technologies that
reduce demand for our current products and services; lower than
expected acceptance of new or existing products or services;
variability in material and commodity costs; product liability
claims; our sales mix of products; protection and validity of our
patent and other intellectual property rights; disruptions in
global credit and financial markets as the result of the COVID-19
pandemic; labor relations or work stoppages; reliance on our
executive leadership team and other key personnel; climate change
and global warming; our plan to reposition our portfolio of product
offerings through exploration of strategic acquisitions and
divestitures and related uncertainties of entering such
transactions; exposure to potential security breaches or other
disruptions to our information technology systems and data
security; political, economic and other risks from operations in
numerous countries; competitor activity; increasing competition,
including increased global competition among our customers in
emerging markets; foreign currency exchange rate changes; the
performance of our pension plan assets and volatility of discount
rates, particularly those related to the sustained slowdown of the
global economy due to the COVID-19 pandemic; the price and
availability of energy; the outcome of pending and future
litigation and governmental proceedings; continued availability of
financing, financial instruments and financial resources in the
amounts, at the times and on the terms required to support our
future business; and other risks detailed from time to time in our
SEC filings, including particularly in the Risk Factors section of
our 2020 Annual Report on Form 10-K and Quarterly Reports on Form
10-Q. Shareholders, potential investors and other readers are urged
to consider these factors carefully in evaluating the
forward-looking statements and are cautioned not to place undue
reliance on such forward-looking statements. The forward-looking
statements made herein are made only as of the date of this press
release and we undertake no obligation to publicly update any
forward-looking statements, whether as a result of new information,
future events or otherwise. More detailed information about factors
that may affect our performance may be found in our filings with
the SEC, which are available at http://www.sec.gov or at
http://www.cummins.com in the Investor Relations section of our
website.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210805005046/en/
Uta Leitner, +49 7 11 17-53058, uta.leitner@daimler.com
Jon Mills, Cummins, Director External Communications, +1
317-658-4540, jon.mills@cummins.com
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