Cummins and Eaton to Form North American Joint Venture
Date:2017-04-12 Source:www.chinatrucks.com
www.chinatrucks.com: Power management company Eaton (NYSE:ETN) and global power leader Cummins Inc. (NYSE:CMI) today announced an agreement to form a joint venture for automated transmissions for heavy-duty and medium-duty commercial vehicles. The joint venture will be named Eaton Cummins Automated Transmission Technologies.
Cummins and Eaton will each own 50 percent of the new joint venture. The formation of the joint venture is subject to regulatory approvals and customary closing conditions. The parties expect the transaction to close in the third quarter of 2017. Cummins will consolidate joint venture results as part of its Components business segment.
“Customers are focused on powertrain solutions that provide the best combination of technology, performance and quality,” said Craig Arnold, Eaton chairman and chief executive officer. “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.”
“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 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 OEMcustomers 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.
Under the terms of the agreement, Eaton will receive $600 million in cash from Cummins for 50 percent interest in the joint venture.
Conference Call with Eaton Management at 1:00 p.m. Eastern, April 10, 2017 Eaton’s conference call to discuss the joint venture is available to all interested parties as a live audio webcast today at 1 p.m. United States Eastern time via a link on the center of Eaton’s home page. This news release can be accessed under its headline on the home page. An audio replay of the webcast will be available at the same link.
Cummins leadership will comment further on the joint venture and answer investor questions during its Q1 2017 Earnings call on May 2 at 10 a.m. ET.
Views:0
Related China Trucks News
- FOTON Cummins’ 100,000th Exhaust Treatment System Rolls off Assembly Line 2023-04-25
- Cummins Launches New Brand "Accelera" for Zero-Emissions Future 2023-03-10
- Cummins East Asia R&D Center New Base Began Operation 2022-11-29
- Cummins Participates in the 6th Foshan Hydrogen Expo(CHFE 2022) in China 2022-11-17
- FOTON Cummins Launched Its F4.5TT Two-stage Supercharged Engine 2022-10-11
- Werner Enterprises Signs LoI to Buy 500 Cummins Hydrogen Engines 2022-09-27
- Cummins Debuts Meritor 17Xe ePowertrain at IAA 2022-09-20
- Cummins to Unveil Hydrogen-powered, Zero-carbon Concept Truck at IAA 2022-09-15
- Cummins Finalizes $3.7 Billion Acquisition of Meritor 2022-08-05
- Dongfeng Cummins Engines Run Smoothly in High-altitude Environment 2022-07-20
China Trucks Advisor
Submit Your Requirements, We Are Always At Your Service.
Hot News
- World’s First All-electric Scania Car Transporter Goes into Service
- China’s First Mining Specialized Remote Sensing Satellite Launched
- SINOTRUK Delivers Full Year 2022 Results, Heavy Truck Sales Down 52.50%
- FOTON and Cummins Team up to Build a New Engine Plant in Thailand
- SANY Awarded as 2022 Forbes China TOP 50 Sustainable DEV Industrial Enterprises
- Daimler Trucks and Buses Signs Deal with XCMG Fire Fighting
- FAW Jiefang Sichuan Branch Was Officially Established
- Bus & Truck Expo Set to be Held in May 2023
- Yutong, SCG Signed MoU for Green Mining in Thailand
- CAT Displays Its First Battery Electric Large Mining Truck
Recommended Brands[more]
Recommended Trucks[more]
China Truck Statistics
- Half Year Review of Commercial Vehicle Sales
- China Exported 63,000 Trucks in May, Up 33% YoY
- Top 10 Best-selling Battery-swapping Heavy Trucks in China in April
- China Exported 158,000 Trucks in Q1, Up 41% YoY
- China’s Truck Exports Grew by 43.8% YoY to 46600 Units in Feb., 2023
- China’s Heavy Truck Sales Rising 29% YOY to 77200 in Feb
- China Exports 567,000 Trucks in 2022, Hitting a New High in a Decade
- China’s Pickup Exports Jumped 65% YOY in 2022
- China's Truck Exports Grew by 42% YOY to 53,000 Units in November
- Heavy Truck Sales in China Fell by 9% YoY to 46000 Units in Nov.