Another Electric Acquisition By Cummins
By Mike Brezonick02 July 2018
Cummins Inc. announced it is acquiring Silicon Valley-based Efficient Drivetrains, Inc. (EDI), which designs and produces hybrid and fully-electric power solutions for commercial markets. Adding EDI to the Cummins portfolio is the latest step forward in Cummins’ efforts to become a global electrified power leader. No financial details were provided.
“As power needs and technologies continue to evolve, Cummins remains committed to innovations that will deliver the right power solutions for the right applications at the right time to help our customers’ succeed,” said Tom Linebarger, Chairman and CEO, Cummins Inc. “This acquisition will combine EDI’s talented workforce and electrification capabilities with Cummins’ expertise in developing and manufacturing the technologies that power the world.”
Cummins said it began developing electrification technologies capabilities more than a decade ago. Over the past nine months, it has accelerated its investments in electrification to build capabilities across the entire range of electric storage technology, including acquisitions of UK-based Johnson Matthey Battery Systems and North American energy storage specialist Brammo.
The addition of EDI’s fully-electric and four-mode hybrid powertrains — which are designed to allow real-time switching between fully electric, series and parallel hybrid operating modes — will further broaden Cummins’ electrification expertise and products, the company said.
“As the industry continues to evolve and OEMs move to include hybrid and electric technologies in their vehicle offerings, the combination of Cummins and EDI represents a tremendous opportunity for growth and category leadership,” said Joerg Ferchau, EDI’s chairman and chief executive officer. “EDI’s advanced portfolio of plug-in-hybrid and full electric technologies paired with Cummins’ industry leadership and focus on innovation will allow us to deliver best-in-class products, service and support worldwide.
“Vehicle OEMs and fleets evaluating new electric and hybrid technologies prefer to work with well-established companies that have the depth and resources to provide the support that’s needed to scale into high volume mass production. Together, we can lead the electrification category, and provide exciting new options that the market will embrace.”
EDI said its EDI PowerDrive series hybrid-electric drivetrain systems, have accumulated more than six million miles in fleet settings in the United States and China.
The acquisition of EDI is subject to the satisfaction of customary closing conditions and is expected to close in the third quarter, Cummins said.