Daimler Powertrain deal with Daimler
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• Daimler-Benz's new Powertrain offshoot has won its first significant order—from another Daimler subsidiary.
Freightliner Corporation will buy up to 20,000 Mercedes 900Series engines, thought to be worth at least £87m, every year. They will power Freightliner and Sterling (formerly Ford) middleweight trucks alongside engines from proprietary manufacturers such as Cummins.
The Powertrain division is part of Daimler's move into supplying major components, also seen in the recent launch of the Mercedes/Hendrickson Discos trailer axle. The 900-Series engines include the four-pot 904 and the six-cylinder 906, covering the range from 1 70-280hp, with parts and servicing provided by Freightliner's 600 dealers.
Freightliner chief executive officer Jim Hebe predicts growth in the US market for middleweight trucks, adding: "We don't see Freightliners current US engine suppliers losing existing business as a result of this deal."