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Eaton and Cummins Inc. Announce Joint
Venture for Automated Transmissions for Heavy-
and Medium-Duty Commercial Vehicles
Power management company Eaton (NYSE:ETN)
and global power leader Cummins Inc. (NYSE:C-
MI) announced an agreement to form a joint ven-
ture 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 appr ovals and
customary closing conditions. The parties ex-
pect the transaction to close in the third quarter
of 2017. Cummins will consolidate joint venture
results as part of its Components business seg-
ment.
“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 technol-
ogy for our global customers.”
“Our growth strategy includes expanding our
product offerings and extending our global foot-
print by becoming the world’s leading powertrain
supplier,” said Tom Linebarger, chairman and
CEO, Cummins Inc. “Our JV with Eaton will deliv-
er 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 effi-
ciency, 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-du-
ty and heavy-duty automated transmissions for
the commercial vehicle market. Eaton’s current
medium-duty automated transmission, Proci-
sion®, 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 OEM customers 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 ven-
ture is available to all interested parties as a live
audio webcast today at 1 p.m. United States East-
ern 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.
Construction Leaders • May 2017
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