Cummins' Brammo Buyout on Track to Derive Electrified Power
Cummins Inc. CMI reported that it is in process to acquire Brammo, Inc.’s assets. Brammo engages in designing and developing battery packs and electric drivetrains.
Founded in 2002, Brammo has made a great progress in developing electric energy storage technology for mobile and stationary applications.
Per management, this acquisition will help the company own key elements of the electrification network along with diesel and natural gas driven powertrains. It will also aid the company to move ahead in the electrification business, among others.
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Per Brammo’s chairman and CEO, Craig Bramscher, the company’s varied range of applications will enhance Cummins’ position in the electrified power space.
The deal is expected to close by this year-end, subject to customary closing conditions.
Post completion of the acquisition, Brammo’s operations will be carried under Cummins’ newly formed Electrification Business, headed by Julie Furber, executive director of Electrification at Cummins.
Going forward, Cummins is expected to gain from expansion strategies including acquisitions in North America and partnership in other regions. These strategies will enable the company to gain higher returns.
Also, with new emission standards in various economies, the company is actively involved in designing and developing electric vehicles for its consumers. In August, it announced its plan to develop a Class 7 heavy-duty electric truck with an advanced 140 kWh battery pack that can be used by bus and commercial truck operators.
Some other important companies in the auto space are Adient PLC ADNT, Autoliv Inc. ALV and Continental AG CTTAY.
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