Cummins acquires Silicon Valley-based developer of hybrid and electric drivetrains
Ohio-based manufacturer Cummins Inc. announced that it is acquiring Silicon Valley-based Efficient Drivetrains, Inc. (EDI), which designs and produces hybrid and fully-electric power solutions for commercial markets. The acquisition is Cummins’ latest effort to expand further in the electrified power business.
“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 began developing its electrification capabilities more than a decade ago. During the past nine months, it accelerated investment in this business when it undertook strategic efforts to build capabilities across the entire range of electric storage, as evidenced by the acquisitions of UK-based Johnson Matthey Battery Systems and North America-based Brammo.
Upon the addition of its fully-electric and unique four-mode hybrid powertrains, EDI will broaden Cummins’ electrification expertise and products with its hybrid system, which is considered one of the most versatile on the market today, able to switch, in real time, between fully electric, series and parallel modes.
Based in the Silicon Valley in 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. EDI’s products and diverse customer base will provide a springboard for Cummins into electrified markets, enabling the company a more 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. The financial terms of the deal were not disclosed.
Cummins operates four manufacturing plants in Mexico. Three plants are located in San Luis Potosi, where the company builds engines ranging from 4 to 10 liters of displacement. Another factory in Juarez, Chihuahua manufactures fuel and after-treatment systems. All Cummins X15 engine fuel systems for the global market are manufactured in Mexico.