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Cummins (NYSE: CMI), a leading provider of engines and generator sets, is making a strong and sustained push into electrification for the commercial vehicles.
A rapid series of acquisitions, partnerships and product launches across its entire portfolio is enabling significant capabilities and momentum ahead of a major ramp in electrified truck, bus and van sales.
- January 2018: Cummins announced the acquisition, for an undisclosed amount, of the UK automotive battery systems business from Johnson Matthey. As a part of the deal, the two companies have agreed to collaborate on developing high-energy battery materials for commercial heavy-duty applications.
- January 2018: Cummins announced that the company will show an electrified powertrain concept suitable for off-highway applications at the INTERMAT tradeshow in April. The solution is designed to replace a standard driveline using larger Cummins or competitive diesel engines of up to 9 litres capacity for applications from wheeled loaders to mobile cranes, terminal tractors and excavators.
- October 2017: Cummins acquired Brammo, a company specialising in the design and development of battery packs for mobile and stationary applications.
- August 2017: Cummins demoed its all electric concept truck, Aeos. Cummins will not manufacturer the truck itself, rather it will sell the underlying technology to truck OEMs, with production likely to begin in 2019.
- May 2017: Cummins announced a partnership with TM4 to develop a plug-in hybrid powertrain for Class 7/8 buses. The aim is to develop a bus with a longer ‘all electric’ range whilst being able to make use of the available fast charging infrastructure. Cummins will provide an engine best suited for range-extending applications.
As we recently wrote here, there is a growing push toward electric and hybrid commercial vehicles, particularly in urban areas.
Whilst Cummins has many millions of customers with diesel engines, and will continue to be a strong player in the diesel engine and generator space, it is strategically lining itself up to take full advantage of the move towards hybrid and electric trucks. Its series of acquisitions and product launches show its growing strength in a market that is set to grow rapidly.