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.
Related articles:
Cummins will buy Meritor for $3.7B
Daimler Truck, Cummins converting Freightliner Cascadias to run on hydrogen
Jake Brake comes home to Cummins in Jacobs Vehicle Systems purchase
Freight Fraud Symposium
Double brokering. AI deepfakes. Identity theft. Freight fraud is an existential threat to the industry. Get ahead of it.
Supply Chain AI Symposium
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
Future of Rail Symposium
Reshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.
Double brokering. AI deepfakes. Identity theft. Freight fraud is an existential threat to the industry. Get ahead of it.
Rock & Roll Hall of Fame • Cleveland, OH Register NowPast the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
The Old Post Office • Chicago, IL Register NowReshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now