PACKAGE DEAL
Two years ago, Cummins Inc. paid a big heap of money – around US$600 million (A$851 million) – to consolidate a joint venture with transmission and drivetrain specialist Eaton Corporation.
The result was an entirely new division called Eaton Cummins Automated Transmission Technologies.
In many minds, including this one, it was one of the smartest moves by Cummins in decades. Nor was it naïve for Eaton to strengthen ties with its fellow American to shore up defences against the rampant rise of European interests.
‘Fortress America’ fighting back, so to speak!
Sure, Eaton and Cummins have worked closely for decades, but never this close and never with the complete intention of creating advanced powertrain packages developed as a single integrated unit.
Overdue? Probably!
Necessary? Absolutely!
European truck makers are, of course, the masters of vertical integration – using in-house engine, transmission and driveline equipment – and their influence on the global trucking industry and North America in particular has never been greater.
Take Freightliner, for example. It now dominates the North American heavy truck market with a massive majority and like stablemate Western Star, is owned by Germany’s vast Daimler organisation. So, too, is Detroit Diesel a key part of the Daimler empire and it doesn’t take a genius to see the corporate and commercial inevitability of a Detroit engine powering an all-Daimler driveline under a Freightliner.
Obviously, it’s an almost identical scenario with Volvo and Mack, using in-house hardware, suitably branded to protect the integrity of each nameplate. Notably Mack!
“I have no intention to stop pushing until I get this engine into a truck.”
Even Paccar, that fountain of American fervour, is
