COLUMBUS, Ind. (WISH) — Columbus-based engine manufacturer Cummins announced ii’s partnering with power management company Eaton to form a joint venture for automated transmissions.
The initiative will be called Eaton Cummins Automated Transmission Technologies.
Cummins will pay Eaton $600 million for 50 percent of the venture. The companies still have to get regulatory approval, but they plan to close the deal in the third quarter of 2017.
The joint venture will design, assemble, sell and support all future medium-duty and heavy-duty automated transmissions for the commercial vehicle market.
“Customers are focused on powertrain solutions that provide the best combination of technology, performance and quality,” said Craig Arnold, Eaton chairman and chief executive officer. “Our joint venture with Cummins will leverage the technical strengths and experience of two industry leaders with long histories and deep industry expertise to provide superior automated transmission technology for our global customers.”
“Our growth strategy includes expanding our product offerings and extending our global footprint by becoming the world’s leading powertrain supplier,” said Tom Linebarger, chairman and CEO of Cummins Inc. “Our JV with Eaton will deliver the most advanced automated transmissions and develop an integrated powertrain and service network that supports our customers like never before. Just as we’ve done for the past 100 years, we will use our experience in partnerships and technological expertise to ensure our customers’ success.”
24-Hour News 8 has reached out to both companies to find out if the venture will impact jobs or production in Indiana. This story will be updated when we hear back.