Even as its $3.7 billion merger with Cummins Inc. proceeds, Meritor Inc. said Friday it has agreed to purchase the Siemens Commercial Vehicles electric propulsion business. The move would bulk up its electrification portfolio.
The battle among players in commercial vehicle electrification is growing fierce. Tier 1 suppliers like BorgWarner Inc., Dana Inc., Eaton Corp. and Cummins are jockeying for market share in fully integrated systems to meet the expected growth in electric trucks.
“The Siemens Commercial Vehicles business offers capabilities and technology that will enhance our ability to offer superior electric solutions to the global commercial vehicle market,” Chris Villavarayan, Meritor’s CEO and president, said in a press release.
Bringing more electric propulsion work in house
Assuming the Cummins purchase of Meritor closes as expected, the $201 million cash deal for the Siemens unit effectively becomes a Cummins purchase. The Meritor deal for Siemens is expected to close by the end of the year. Cummins supports Meritor entering into the agreement and completing the acquisition.
The Siemens Commercial Vehicles business develops, designs and produces high-performance electric drive systems. Products include direct drive and transmission-based remote mount electric motors, inverters, software and related services. The unit has about 200 employees in the U.S., China and Europe.
Cummins likes the addition of the Siemens’ business because it will bring electronic axle subcomponent technologies in house. Cummins sees Meritor’s popular 14Xe powertrain as a key to integrating other electrification components.