Cummins has announced acquisition of the Silicon Valley-based Efficient Drivetrains (EDI), which designs and produces hybrid- and full-electric power solutions for commercial vehicles.
According to Cummins the addition of EDI to its portfolio is the latest step forward in its efforts to become a global electrified power leader.
"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.
"This acquisition will combine EDI’s talented workforce and electrification capabilities with Cummins’ expertise in developing and manufacturing the technologies that power the world," added Linebarger.
Cummins which began developing its electrification capabilities more than a decade ago, has accelerated its investments during the past nine months. By undertaking strategic efforts to build capabilities across the entire range of electric storage, for instance by acquiring UK-based Johnson Matthey Battery Systems and North America-based Brammo.
With the addition of its full-electric and unique four-mode hybrid powertrains, Cummins states EDI will broaden the company’s electrification expertise and products. It claims that EDI’s hybrid system is the most versatile on the market today, able to switch, in real time, between fully electric, series and parallel modes.
"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, chairman and CEO, EDI.
"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," added Ferchau.
Based in the Silicon Valley, California, EDI’s portfolio of hybrid-electric drivetrain systems, the EDI PowerDrive series, have traveled more than six million miles in a fleet setting in the United States and China.
According to Cummins, EDI’s products and diverse customer base will provide a springboard for the company into electrified markets, enabling it a immediate ability to grow market share.
The closing of the acquisition of EDI is subject to the satisfaction of customary closing conditions and is expected to close in the third quarter.