Cummins and Eaton form joint venture
Cummins and Eaton have announced a major North American joint venture, however Cummins says it should not impact the Australian and New Zealand markets for some time.
In a major initiative which will bring together two of North America’s most advanced engine and drivetrain companies, Cummins and Eaton have announced an agreement to form a joint venture for automated transmissions for heavy-duty and medium-duty commercial vehicles.
The joint venture will be known as Eaton Cummins Automated Transmission Technologies.
Cummins and Eaton will each own 50 percent of the new joint venture and both parties expect the transaction to be finalised in the third quarter of this year. Under the terms of the agreement, Eaton will receive $600 million in cash from Cummins for 50 percent interest in the joint venture.
Locally, Cummins says it does not expect the joint venture to impact the Australian and New Zealand markets for some time yet, though Cummins and Eaton will continue to work closely on product development and customer support as they have done for decades.
In the future, however, the joint venture will provide automated transmissions for commercial vehicle applications in Australia and New Zealand.
In a US press statement, Eaton chairman and chief executive officer Craig Arnold said, "Customers are focused on powertrain solutions that provide the best combination of technology, performance and quality.
"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."
At Cummins, chairman and chief executive officer Tom Linebarger, commented, "Our growth strategy includes expanding our product offerings and extending our global footprint by becoming the world’s leading powertrain supplier."
The joint venture "... will deliver the most advanced automated transmissions and develop an integrated powertrain and service network that supports our customers like never before," he said.