Cummins Drivetrain and Braking Systems (CDBS), a part of Cummins Inc.’s Components segment, is ramping up production capacity for air disc brakes (ADBs) and rear axles with strategic investments totaling over $190 million. These investments underscore Cummins’ commitment to meeting the increasing demand for advanced braking and axle solutions in the commercial vehicle sector. The industry is witnessing a significant shift towards ADBs, driven by their benefits including enhanced stopping power and safety as compared to traditional drum brakes. The adoption of ADBs is expected to reach over 70% on Class 8 trucks in North America.

Cummins, a key player in the air disc brake industry with its Meritor® product offerings, is strategically positioned to capitalize on this market trend. With a strong focus on innovation and quality, Cummins has been a pioneer in advanced brake technology. The company's investments in increasing ADB production capacity will enable it to meet the accelerating customer demand and further solidify its position as a leader in the ADB market. Cummins’ extensive portfolio of ADBs includes single and dual piston offerings and are compatible with a wide range of commercial vehicle applications.

As the world’s largest manufacturer of heavy-duty truck axles, Cummins offers an extensive axle portfolio, including front-drive and non-drive axles, as well as single, tandem, and tridem rear-drive axles. With a laser focus on innovation, Meritor® rear axles deliver increased efficiency by enhancing payload capacities and reducing fuel costs.

“Over the last decade, Cummins Drivetrain and Braking Systems has invested significant capital to increase rear axle production capacity in North America by 30% across our plants in the United States and Mexico. Due to continued increased demand for our products and the upcoming large pre-buy markets in 2025 and 2026, we are investing to add additional capacity in our rear axle network by 2026." said Ken Hogan, Vice President and General Manager – Cummins Drivetrain and Braking Systems.

In August 2022, Cummins Drivetrain and Braking Systems, previously known as Meritor, was acquired by Cummins, to develop economically viable decarbonized powertrain solutions that are better for people and our planet.

Key Investment Highlights:

Air disc brake capacity: A $33 million investment will elevate Cummins' North American air disc brake production capacity by approximately 75%. This investment, primarily focused on the Monterrey, Mexico facility, includes expansions for housing, caliper, and adjuster assembly, as well as machining operations for op shafts and torque plates. The investment is planned to be installed by the second half of 2025. Additionally, as a part of its ProductionNEXT program, Cummins has invested $35 million in its manufacturing plant in Cwmbran, Wales, to support innovation in air disc brake production.

Rear axle capacity: An investment of $55 million will boost Cummins’ North American Meritor rear axle portfolio production by 50,000 units per year in the second half of 2025. This enhancement includes additional capacity for rear axle assembly, carrier assembly, bracket welding, internal heat treatment, bevel gear set blank machining, forging tooling, carrier casting machining, diff component machining, and additional tooling for external suppliers.

Logistics Center launch: A $30 million investment in infrastructure and systems will see the launch of a new Logistics Center in Monterrey, along with a Warehouse Management System. This investment aims to support Cummins' growing needs in North America.

Cummins' investments in production capacity expansion come at a critical time as the industry prepares for large pre-buy markets in 2025 and 2026. The company's strategic investments will not only meet current demand but also position it for future growth in the ADB and rear axle market segments.

"We are committed to investing in all foundation brake technologies in North America to meet our evolving customer needs, including the industry leading Q+™ drum brake, EX+™ air disc brake and our Quadraulic™ hydraulic disc brake. We have a complete and established braking product portfolio that includes friction material compliance to the latest copper free regulations, friction wear sensing and drag reduction systems. The EX+™ air disc brake is already available in the North American market today with pad wear sensing that is ready to be integrated into the truck dashboards where available. Our next product releases will add digitalization to further enhance brake health monitoring and wear prediction" said Stefan Schaeffer, North America Commercial Leader.

ProductionNEXT

The ProductionNEXT program, a key component of Cummins Drivetrain and Braking Systems' growth strategy, aims to create a more agile, efficient, and resilient global supply chain. Initiatives include expanding operations in Monterrey, Mexico, with new production lines and a state-of-the-art logistics center to boost production levels and streamline operations; the transfer of two production lines from Laurinburg, North Carolina, to Oshkosh, Wisconsin, to alleviate high levels of overtime and enhance capacity; and the installation of a new 3,000-ton forging press in Morristown, Tennessee, to improve safety and overall equipment efficiency while meeting customer demand and reducing reliance on overtime.

ProductionNEXT recently announced a $40 million capital infusion to add bracket weld, carrier and axle assembly capacity across three sites (Fletcher, North Carolina; Asheville, North Carolina; and Monterrey, Mexico), in addition to a $35 million investment in the air disc brake production at Cwmbran. Robert Frazier, Senior Director of Global Supply Chain Transformation, leads the ProductionNEXT program.