This week, the major engine manufacturer Cummins announced it will be acquiring Meritor, a leading supplier of vehicle parts. Executives say expected growth in electric heavy vehicles and the need to lead in this area was the key to this purchase.
The two companies are doing complementary research and development. Cummins is developing electric power trains, and Meritor is developing components for electric trucks, such as axels which have integrated electric motors.
Since it is often less expensive and easier to acquire needed technology than to undergo in house R&D or purchase the technology from a third supplier, expect to see more acquisitions relating to sustainable technologies, particularly among companies with complementary pursuits.
For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, including the update of Global Hybrid & Electric Vehicles which is in progress now and Global Medium- & Heavy-Duty Trucks & Buses and Medium- & Heavy-Duty Trucks & Buses: United States from Freedonia Focus. Freedonia Custom Research is also available for questions requiring tailored market intelligence