By Dave Sebastian

 

Daimler Truck AG and Cummins Inc. said they have signed a memorandum of understanding establishing a partnership for medium-duty engine systems, and that they are also evaluating other collaboration possibilities.

As part of the planned partnership, engine manufacturer Cummins will invest in the further development of medium-duty engine systems for Daimler Trucks and Buses and delivery of such engines starting the second half of the decade, the companies said Tuesday.

Cummins will start an engine plant in the Mercedes-Benz Mannheim campus to make medium-duty engines that are compliant with emissions standards, the companies said. Cummins will also use its production and supply-chain networks in other regions for use in other Daimler Trucks' brands, including those of Daimler Trucks North America, the companies said.

Daimler said it expects the partnership to enable it to increase development of alternative and emerging technologies, including non-diesel engines, as it plans to focus on the further progression of zero-emission drive technologies and commercial heavy-duty drivetrains.

 

Write to Dave Sebastian at dave.sebastian@wsj.com

 

(END) Dow Jones Newswires

February 23, 2021 08:38 ET (13:38 GMT)

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