Trucker 1216 Smartadvantage

Eaton-Cummins JV to build automated transmissions

April 11, 2017
Powertrain leaders' 50/50 partnership to focus on fuel economy, emissions

Aiming to become "the world’s leading powertrain supplier," ;Eaton Corp. and Cummins Inc. are forming a new 50/50 joint venture to build automated transmissions for heavy- and medium-duty commercial vehicles to be called Eaton Cummins Automated Transmission Technologies.

The two companies said in a statement the new joint venture should be finalized by the third quarter of this year, with Cummins consolidating joint venture results as part of its components business segment going forward.

“We think that business is well positioned for growth in and around changes in a regulatory environment based fuel economy and [exhaust] emissions control,” said Craig Arnold, Eaton’s chairman and CEO. “We think it strengthens us to best address future demands for drivetrain performance."

Eaton's Procision AMT, introduced 3 years ago.

Once established, Arnold said the joint venture will design, assemble, sell and support all future medium- and heavy-duty automated transmissions for the commercial vehicle market – which includes Eaton’s current medium-duty Procision, as well as a next generation heavy-duty transmissions currently under development.

The joint venture will also be tasked with marketing, selling, and supporting Eaton’s current generation of automated heavy-duty transmissions to OEM customers in North America, Arnold noted.

“Customers are focused on powertrain solutions that provide the best combination of technology, performance and quality,” he emphasized. “This combination puts together two of the world’s leading powertrain suppliers to position our respective businesses to develop solutions for emissions, fuel economy and ultimately performance as well.”

Arnold added that Eaton has worked with Cummins for many years, which is why it’s put automated transmissions into this joint venture.

“Like the Smart Advantage technology we developed years ago, this is an opportunity to build on our history and do better job of deeper integration,” he said.

The joint venture will also increase Eaton’s access to global markets, allowing it to benefit from Cummins’ scale around the world. “We’re equally excited for the synergies that come with working more closely together, such as in purchasing, than we can do as independent companies.”

“Our growth strategy includes expanding our product offerings and extending our global footprint by becoming the world’s leading powertrain supplier,” added Tom Linebarger, chairman and CEO of Cummins. “Our joint ventured with Eaton will deliver the most advanced automated transmissions and develop an integrated powertrain and service network that supports our customers like never before.”

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