Cummins Inc. (NYSE: CMI) and Daimler Truck AG penned down the MOU and commenced a strategic partnership. Both the firms disclosed that they will explore other opportunities for their collaboration. Both the firms have collaborated and revealed that Cummins will participate in the further growth of medium-duty engine systems for Daimler Trucks and Buses.

Furthermore, it will also participate in the worldwide production and supply of medium-duty engines by CMI for Daimler Trucks and Buses starting in the second half of the ten-year period. As part of the partnership agreement, Cummins will also set up an engine factory within the Mercedes-Benz Mannheim site to pinpoint medium-duty engines in compliance with the Euro VII emissions benchmark for Daimler Trucks and Buses.

Cummins Inc. will offer the global medium-duty engine systems for Daimler Trucks and Buses all around the globe. Daimler Truck AG is concentrating on the expansion of zero-emission drive technologies and the continued growth of its own heavy-duty engine platform (HDEP).

The first step the firm will take is to produce the medium-duty Cummins engine at the Mercedes-Benz Mannheim site. Furthermore, Daimler expects the collaboration with Cummins will allow Daimler to boost and speed up its growth efforts on complementary and evolving technologies, plus non-diesel engines.  The HDEP for the heavy-duty vehicle segment of Daimler Trucks and Buses will continue to be in the Daimler Truck AG portfolio.