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Cummins completes acquisition of Meritor

Global vehicle engine designer and manufacturer Cummins Inc. recently reported that its $3.7 billion acquisition of Troy, Michigan-based Meritor Inc., a leading drivetrain, axle, and brake technology company, is complete.

According to the Meritor website, “The integration of Meritor’s people, products and capabilities in axle and brake technology will position Cummins as a leading provider of integrated powertrain solutions across internal combustion and electric power applications.”

The acquisition will help Cummins achieve its ability “to deliver marketleading decarbonized solutions to global customers by accelerating Meritor’s investment in electrification and integrating development within its New Power business.”

A major goal for Cummins is to focus on what it calls “Destination Zero,” the company’s ongoing strategy to mass produce zero-emission vehicles in the coming years.

Cummins also expects to use its “global footprint” to continue the growth and sales of Meritor’s axle and brake technology for “commercial truck, trailer, off-highway, defense, specialty and aftermarket customers around the world.”

“We are excited to welcome Meritor’s employees into Cummins,” said Jennifer Rumsey, Cummins’ President and Chief Executive Officer. “Together, Cummins and Meritor will move further and faster in developing economically viable decarbonized powertrain solutions that are better for people and our planet.”

Meritor shareholders voted in support of the acquisition by Cummins back in May. Only regulatory hurdles were left to clear.

In May, Meritor CEO Chris Villavarayan said, “The strong support our shareholders have expressed for this transaction reflects the compelling value and important opportunity to shape the future of powertrain components and accelerate development of electrified power solutions for commercial vehicles.”

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Washington Officials Drop Appeal Over Meal and Rest Breaks

The state of Washington has given up its appeal of a decision that ruled the state’s truckers should abide by the Federal Motor Carrier Safety Administration’s (FMCSA) hours-of-service (HOS) rules when it came to meal and rest breaks. The appeal had originally been filed in 2020 after the FMCSA ruling in favor of the Washington Trucking Associations (WTA) petition claiming that FMCSA’s rules preempted the state’s rules. The state may have dropped the appeal because a similar appeal in California had been denied. WTA President and CEO Sheri Call, said Washington’s decision to drop its appeal is “a positive development for strengthening, or at least maintaining, federal preemption on our meal and rest break rules.” Federal HOS rules require long-haul truckers to take a break for at least 30 minutes after eight hours of driving time. Washington’s MRB rules, however, require a 30-minute meal period for every five consecutive hours of driving as well as a 10-minute rest break for every four additional hours. The state argued that its rules reduced the risk of driver fatigue and that they did not disrupt interstate commerce because they only apply in Washington. The WTA, on the other hand, says the rules present a burden for trucking companies. The WTA was backed by the American Trucking Associations and the Chamber of Commerce.

“Washington’s break rules represent an unreasonable burden on interstate commerce for much the same reasons FMCSA recently concluded California’s do,” WTA stated in its petition. WTA further argued that Washington’s rules decrease driver availability by requiring “dead time” that results with extra trips off the highway for such breaks.

The National Industrial Transportation League also supported WTA by saying the state’s rules “would exacerbate confusion among shippers, drivers and carriers, create unnecessary complexity and undermine compliance. A patchwork quilt of meal and rest break rules would translate into substantial additional decreases in efficiency and productivity.” The FMCSA has tended to agree with these arguments. At least 20 states regulate meal and rest breaks to some degree.

“Having concluded that Washington’s MRB rules unreasonably burden interstate commerce, the agency further determines that the cumulative effect of other states’ similar laws would increase the burden,” FMCSA said.