Daimler Truck AG and Cummins Inc. announce global medium-duty vehicle engine plan

Under this strategic partnership, Cummins will invest in the further development of medium-duty engine systems for Daimler Trucks and Buses and in the global production and supply of medium-duty engines for Daimler Trucks and Buses, starting in the second half of this decade.

Martin Daum, Chairman of the Board of Management of Daimler Truck AG and member of the Executive Board of Daimler AG, said, "The agreement in principle between Daimler Truck AG and Cummins prepares engine production at the Mannheim site for the future and at the same time strengthens our competitiveness. With the switchover to Euro VII, we would have to invest considerable resources in the further development of our medium-duty engines. We are now freeing up those resources for technologies that are crucial to our long-term success in transforming our industry."

"We are pleased with this important strategic partnership for the global supply of medium-duty engine systems to Daimler Trucks and Buses," said Tom Linebarger, Chairman and CEO of Cummins Inc. "This partnership with Daimler enables both companies to increase competitiveness, drive global innovation, expand customer offerings and reduce emissions. We look forward to working with Daimler and are exploring other possible collaborations to grow our respective businesses. As the world's largest independent energy solutions provider, Cummins is committed to providing the right solution for every customer, wherever they are. This is possible thanks to a wide range of energy solutions, from advanced diesels and virtually emission-free natural gas systems, to pure electric engines to hydrogen and other technologies."

Production of medium-duty Cummins engines at the Daimler plant in Mannheim

Cummins Inc. will establish an engine plant on the premises of Mercedes-Benz Mannheim. This will make efficient use of existing resources to build medium-duty engines for Mercedes-Benz. Those engines will meet the Euro VII emissions standard and will ensure further joint success in the medium-duty vehicle segment. With this strategic partnership, Daimler Truck AG and Cummins will maintain employment at the Mannheim plant. Cummins will use its existing footprint and strong manufacturing and supply networks in all other regions to also supply the engines to other Daimler Trucks brands, including Daimler Trucks North America brands.

"By signing this agreement in principle, we offer a clear future perspective for the Mannheim site, which currently produces medium-duty engines and will continue to do so in the future. This is good for Mannheim," says Martin Daum. "Nevertheless, it also brings some changes for the site. Together with the works council, we will shape these changes in the coming years and develop joint solutions, always keeping the interests of our customers, employees and company at heart."

Daimler Truck focuses on alternative drive technologies and engines for heavy-duty vehicles

Daimler expects the partnership with Cummins to enable the manufacturer to step up and accelerate its development efforts in alternative and emerging technologies (including non-diesel engines). In the future, Daimler Truck AG will focus on the further development of emission-free drive technologies and engines for heavy trucks. Production of the current generation of medium-duty engines (MDEG) by Daimler Truck AG will end when the Cummins engines are put into production in Mannheim. As a next step, the partners will evaluate a broader global strategic cooperation by identifying potential synergies in areas such as drive system components and engines.

Daimler Trucks and Buses' heavy-duty vehicle engine platform (HDEP) will remain part of Daimler Truck AG's portfolio. The range of HDEP engines will continue to be built by the global production network in Mannheim and Detroit (Michigan) and will be used worldwide in heavy trucks, coaches and third-party products.