Daimler Truck and Cummins signed the framework agreement for a partnership for medium-duty commercial vehicle engines. The two companies announced in February that they would enter the partnership.

Under the partnership, Cummins will invest in the further development of the medium-duty engine platform and its global production and delivery starting in the second half of the decade for Daimler trucks and buses. Daimler Truck will no longer invest its own funds in the further development of its medium-duty engines for the Euro VII emissions standard.

“We are very pleased that we were able to conclude the negotiations for a framework agreement with Cummins so quickly. The cooperation makes engine production at the Mannheim location ready for the future and strengthens our competitiveness at the same time. We will develop joint solutions, always keeping the interests of our customers, employees and the company in mind,” Martin Daum, chairman of the board of management at Daimler Truck and a member of the board of management at Daimler, said.

“We are pleased to sign this agreement as we move forward in collaboration to provide the medium-duty engine systems for Daimler trucks and buses in global markets,” Tom Linebarger, chairman and CEO of Cummins, said. “Our partnership is a terrific opportunity for both companies to be more competitive, drive global innovation, expand offerings to customers and reduce emissions. We are looking forward to working with Daimler on this and exploring other potential opportunities to grow our respective companies.”

Cummins will set up an engine production facility on the site of the Mercedes-Benz plant in Mannheim, Germany, for local production of medium-duty engines that meet the Euro VII emissions standard for Daimler trucks and buses. Production is expected to start in the second half of the decade.

With this partnership, Daimler Truck and Cummins will help maintain jobs at the Mannheim location. Cummins will use its existing footprint, production and supply chain networks in other regions for Daimler Trucks’ brands, including those of Daimler Trucks North America.