Transmission maker and leading engine manufacturer Cummins announced a joint venture to develop automated transmissions for the heavy and medium duty markets.
Known as Eaton Cummins Automated Transmission Technologies, both companies have a 50 per cent stake in the new venture and Eaton will receive a US $600 million financial investment from Cummins.
The deal is expected to be finalised by the third quarter of this year and is subject to regulatory body approval.
Eaton CEO and chairman Craig Arnold says the new venture will see the development of the powertrains the market is demanding.
“Customers are focused on powertrain solutions that provide the best combination of technology, performance and quality,” Arnold said.
“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.”
According to Tom Linebarger, chairman and CEO of Cummins Inc, the joint venture is a logical progression to streamline the engine company’s ever-expanding footprint.
“Our growth strategy includes expanding our product offerings and extending our global footprint by becoming the world’s leading powertrain supplier,” Linebarger said.
“Our JV with Eaton will deliver the most advanced automated transmissions and develop an integrated powertrain and service network that supports our customers like never before. Just as we’ve done for the past 100 years, we will use our experience in partnerships and technological expertise to ensure our customers’ success.”
The global joint venture will provide customers with industry-leading transmission technologies and solutions that deliver best-in-class fuel efficiency, performance and uptime while leveraging both Cummins’ and Eaton’s global service and support networks.
The joint venture will design, assemble, sell and support all future medium-duty and heavy-duty automated transmissions for the commercial vehicle market. Eaton’s current medium-duty automated transmission, Procision and next generation heavy-duty automated transmissions will be part of the joint venture. In addition, the joint venture will market, sell, and support Eaton’s current generation of automated heavy-duty transmissions to OEM customers in North America.
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.