Cleveland, Ohio – In a potentially huge partnership in the commercial vehicle world, diesel-engine manufacturer Cummins Inc. is pooling assets with transmission manufacturer Eaton to create a North American joint venture to make automated transmissions for heavy-duty and medium-duty vehicles.
Cummins will pay Eaton $600 million to enter the joint venture, while Eaton will provide the transmission technologies. The joint venture gives Cummins the ability to become a single-source powertrain supplier in the commercial world – supplying engines and transmissions. Commercial truck builders tend to work with multiple engine and transmission suppliers, and offering both services could simplify ordering processes for large manufacturers.
Eaton Cummins Automated Transmission Technologies will take over design, manufacturing, marketing, sales, and support of:
- Eaton’s Procision automated transmission line for medium-duty trucks
- Current and future heavy-duty automated transmissions
Each company will hold 50% of the joint venture, and executives expect to close the deal in the third quarter of 2017. Cummins will consolidate joint venture results as part of its Components business segment.
“Our growth strategy includes expanding our product offerings and extending our global footprint by becoming the world’s leading powertrain supplier,” said Tom Linebarger, chairman and CEO, Cummins Inc. “Our JV with Eaton will deliver the most advanced automated transmissions and develop an integrated powertrain and service network that supports our customers.”
Eaton Chairman and CEO Craig Arnold added, “Our joint venture with Cummins will leverage the technical strengths and experience of two industry leaders with long histories and deep industry expertise to provide superior automated transmission technology for our global customers.”
Eaton’s Vehicle Group will retain its global manual transmission business, global clutch business, current generation medium-duty and heavy-duty automated transmission business outside of North America, global aftermarket business, light-duty transmission business, agricultural transmission business, and global automotive business and associated product lines.
About the author: Robert Schoenberger is the editor of Today’s Motor Vehicles and a contributor to Today’s Medical Developments and Aerospace Manufacturing and Design. He has written about the automotive industry for more than 17 years at The Plain Dealer in Cleveland, Ohio; The Courier-Journal in Louisville, Kentucky; and The Clarion-Ledger in Jackson, Mississippi.