Alan Rabadi (general manager of global aftermarket and business development at Cummins-Meritor) said the acquisition of Meritor enhances powertrain offerings, accelerates EV development, and improves financial strength.
Cummins-Meritor finalized its acquisition last August, allowing for broader access to technology, resources, and global opportunities. Alan Rabadi said the acquisition has three main benefits: enhancing commercial vehicle powertrain offerings, accelerating electric vehicle technologies and product development, and improving financial strength. The combination of EV technology and products will help the companies accelerate the development of electric powertrains.
Where Does Meritor Fit in with Cummins? Cummins Inc. operates five operating segments, including components, into which the Cummins-Meritor business unit fits. Investments in zero emissions have been made by both companies, and the acquisition reduces operating costs by combining overlap on the corporate level.
According to Rabadi, the deal thesis assumes creating more value by operating as one company than the sum of the parts as two separate entities. The combined company also gives broader global opportunities, with access to different parts of the business and different parts of the world.
The Meritor product name remains after the Cummins acquisition, said Rabadi. “It has a lot of brand equity and people will recognize it in the market. We’re not going to go and scrub Meritor from the products.”
Sources: https://www.truckinginfo.com/10191366/cummins-meritor-detail-integration-benefits
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