A Cummins subsidiary has acquired a business which the company says will further enhance its new energy business unit.
Global engine and technology producer Cummins subsidiary Meritor has completed its acquisition of Siemens’ commercial vehicles business, which specialises in high-performance electric drive systems for commercial transport applications. In May, Meritor entered into an agreement to acquire the business for approximately €190 million, and Cummins subsequently completed its acquisition of Meritor in August.
The company says its acquisition will add key capabilities in direct drive and transmission-based remote-mount electric motors, inverters, software and related services which are critical elements in the next generation of electric powertrains. The firm believes that the capabilities, and the addition of nearly 200 employees in Germany, China and the United States, will accelerate its ability to offer global customers a wider array of electrified product solutions across commercial vehicle applications.
“We are excited to welcome Siemens’ Commercial Vehicles electric drive systems business into Cummins,” said Jennifer Rumsey, President and CEO at Cummins. “By combining our collective, deep knowledge of our industry and how our customers use our applications, we will innovate and advance key technologies. This acquisition also reflects another key milestone in the execution of our strategy to reach net-zero emissions by 2050 in a way that is best for our customers and the planet.”
“We are thrilled to join Cummins, which has a long history serving the commercial vehicle market,” said Mart Verschoor, former CEO of Siemens Commercial Vehicles, and who will assume a new role as Vice President of Traction Systems within Cummins’ New Power segment. “I know we will deliver technologies required to accelerate adoption of zero-emission powertrains that delight our customers and move our communities forward.”