Daimler, Isuzu, and Hino Surrender Collectively
Introduction
A decade-long “final battle” in the global commercial vehicle powertrain market will conclude in 2026.
Daimler Trucks—the European commercial vehicle giant and parent company of Mercedes-Benz heavy trucks—has officially announced the cessation of its self-developed medium and heavy-duty diesel engines, adopting Cummins powertrains exclusively in the future.
Isuzu and Hino—Japan’s two diesel engine giants, renowned for their durability and fuel efficiency for decades, have successively closed their independent engine development platforms, deeply integrating with Cummins.
Volkswagen Traton, Volvo, MAN, and other giants have scaled back their self-developed engines, choosing to cooperate with Cummins or directly purchase from them.
Previously, OEMs looked down on independent engine manufacturers, insisting on full-stack self-development of both vehicles and powertrains; now, Daimler, Isuzu, and Hino have collectively surrendered, and Cummins has unified the market.
This is not a simple business partnership; it’s the ultimate reshuffling of the global commercial vehicle powertrain landscape. Cummins has won, winning in technology, cost, compliance, globalization, and, most importantly, the tide of the times.
I. Collective Surrender: Three Giants Admit Defeat, Abandoning a Century-Old Foundation of Self-Developed Engines
1. Daimler: Completely Abandoning Medium and Heavy-Duty Engines, Mercedes-Benz Adopts Cummins
As the world’s most qualified automaker to develop its own engines, Daimler’s “surrender” is the most symbolic.
According to the agreement:
• Daimler will no longer invest a single penny in the research and development of medium-duty engines that meet Euro 7 emission standards;
• Cummins will build a factory in Mannheim, Germany, exclusively supplying Mercedes-Benz trucks and buses;
• Globally, Mercedes-Benz will gradually switch to the Cummins platform for its heavy-duty and light-duty trucks.
The Mercedes-Benz OM series engine was once the pinnacle of diesel engines. Now, Daimler admits: it can’t afford to maintain it, can’t keep up, and can’t keep pace.
2. Isuzu: The King of Japanese Diesel Engines, Handing Over Core Platforms to Cummins
Isuzu’s 4J and 6H series engines, robust, durable, fuel-efficient, and reliable, have dominated the Asian market for half a century.
In 2025, Isuzu officially announced:
• Cessating from independent development of its next-generation main diesel engine;
• Jointly developing a global platform with Cummins, with Cummins retaining technological leadership;
• Sharing the powertrain across the Japanese domestic market, Southeast Asia, and North America.
Isuzu, known for its “unbreakable” engines, ultimately chose to leave its own company and join Cummins.
3. Hino: Toyota’s heavy-duty truck brand, directly withdrawing from the engine race
Hino engines, once a symbol of Japanese reliability, were completely crippled after a series of emissions scandals:
• Closing its independent R&D department;
• Merging into the Isuzu-Cummins alliance;
• Future models will only use Cummins or jointly developed engines.
All three major Japanese commercial vehicle powertrain manufacturers have surrendered.
The European giant and the two Japanese powerhouses collectively abandoned their century-old foundation of independent R&D, turning to Cummins. This was unthinkable a decade ago.
II. Why are these giants “unable to win, unable to escape, and forced to surrender”? 1. Explosive R&D Costs: Starting at 10 Billion Yuan per Platform, Too Much for Automakers to Afford
Meeting the world’s strictest emission standards, including Euro 7, China VI b, and US EPA 2027, developing a single engine costs over $10 billion and takes 5-8 years.
• Daimler: Annual engine R&D investment exceeds 3 billion euros, profits can’t sustain it;
• Isuzu: Annual profit is less than 1/5 of Cummins’, unable to iterate independently;
• Hino: After the emissions scandal, dared not develop its own engines.
Cummins alone invests more in R&D annually than Daimler + Isuzu + Hino combined; economies of scale overwhelm everything.
2. Emissions Compliance Deadlock: Lack of Expertise Leads to Failure, Falsification Leads to Death
Diesel engine emissions control is a highly sophisticated systems engineering project:
• Deeply coupled high-pressure common rail, turbocharging, after-treatment, thermal management, and electronic control;
• Missing even one parameter leads to emissions fraud, huge fines, and global recalls.
Hino, Volkswagen, and Ford have all been embroiled in emissions scandals, resulting in brand collapse and massive compensation claims.
Cummins is the world’s only independent powertrain giant with a fully self-developed, self-calibrated, and self-compliant process, mitigating risks at the source.
3. New Energy Diversion: OEMs are investing heavily in electric and hydrogen power.
Daimler, Isuzu, and Hino share a consistent strategy:
• Abandoning traditional diesel engine development, using the saved funds for electric and hydrogen power;
• Leaving the “mature battlefield” of diesel power to Cummins;
• OEMs focusing on vehicle integration, intelligent technology, and zero-carbon technologies.
Diesel engines are no longer a differentiating selling point, but a standardized component.
4. The Cummins Model Has No Solution: Professionals Do Professional Things
Cummins focuses on only one thing: powertrain.
• 4000+ R&D engineers, globally synchronized iteration;
• Annual sales exceeding 2 million units, with costs pushed to the extreme;
• Compatible with all vehicles, all road conditions, and all fuel types.
OEMs develop their own systems “to serve themselves”;
Cummins’ R&D “serves the world.”
With a tenfold difference in efficiency and a one-fold difference in cost, how can OEMs win?
III. Why Does Cummins Win? Four Impenetrable Moats
1. Full-Spectrum Coverage: From light trucks to heavy trucks, from diesel to hydrogen fuel cell
Cummins’ product matrix is comprehensive:
• 2.8L–15L full displacement diesel/gas engines;
• Hybrid, pure electric, hydrogen fuel cell, and fuel cell full coverage;
• Adaptable to all scenarios including off-road machinery, marine, power generation, and mining machinery.
No matter what kind of vehicles Daimler, Isuzu, or Hino builds, Cummins has ready-made solutions.
2. Global Compliance: Can be registered anywhere, no penalties.
Cummins is the only engine manufacturer that simultaneously meets the emission standards of six major global countries: Europe, America, China, Japan, and India.
For OEMs, using Cummins is like achieving global compliance with a single click, eliminating the need for separate adaptation, calibration, and modifications.
3. Reliability Legend: Millions of kilometers without major repairs, users vote with their feet.
Globally recognized by drivers:
• Cummins = durable, fuel-efficient, easy to repair, abundant spare parts;
• Millions of kilometers without major repairs is the norm;
• Higher resale value.
OEMs without Cummins won’t be satisfied with their products; using Cummins immediately stabilizes sales.
4. Open Ecosystem: Doesn’t manufacture cars, only acts as a “partner to OEMs”
Cummins’ smartest move: focuses on powertrains, not manufacturing complete vehicles.
• Don’t compete with customers for market share;
• Don’t hold them hostage or exclude them;
• Anyone can use it, and the more you use it, the cheaper it becomes.
Daimler, Isuzu, and Hino don’t need to worry about being reverse-controlled by Cummins; cooperation is risk-free.
IV. Times Have Changed: Commercial Vehicle Powertrains – From “Self-Developed Pride” to “Cost Burden”
Ten years ago, the commercial vehicle industry believed: whoever controls the engine controls the market.
Mercedes-Benz OM, MAN D26, Isuzu 6UZ, and Hino J08 were all sources of pride for automakers.
Ten years later, the logic has completely reversed:
• Electrification has arrived, reducing the value of traditional diesel engines;
• Emissions are becoming increasingly stringent, turning self-developed engines into money-guzzling beasts;
• Specialized division of labor has allowed independent suppliers to outperform OEMs.
Daimler, Isuzu, and Hino didn’t lose due to technology, but due to the times.
Cummins didn’t win due to luck, but due to its positioning.
This is a classic victory of vertical specialization in industrial history:
• Intel won in PC processors;
• CATL won in power batteries;
• Cummins won in commercial vehicle power.
V. What does this mean for the Chinese market: A reshaping of the landscape, opportunities and challenges coexisting
Cummins’ global dominance has a profound impact on China’s commercial vehicle industry:
1. Cummins becomes standard in domestic heavy-duty trucks: Foton, Dongfeng, Shaanxi Automobile, and FAW all use Cummins in a large number of models;
2. Smoother overseas exports: With Cummins power, global registration, after-sales service, and compliance are all solved with one click;
3. Pressure on domestic engine manufacturers: Weichai, Yuchai, Yunnei, etc., must directly compete on cost, technology, and reliability;
4. Overtaking in new energy: Traditional diesel engines are no longer a foregone conclusion, and Chinese brands have the opportunity to rewrite the rules in electric, hybrid, and hydrogen energy.
Cummins’ victory reminds Chinese companies that in mature markets, specialization, scale, and globalization are the ultimate answers.
VI. The Final Battle is Over: Independent Engine Manufacturers Triumph Over Self-Developed Vehicle Empires
Daimler, Isuzu, and Hino have all surrendered;
Cummins has unified the global commercial vehicle powertrain market.
This is not a victory for a single company, but a victory for industrial specialization, efficiency, and professionalism.
Once, vehicle manufacturers believed: the engine is the heart, and must be in their own hands.
Now, vehicle manufacturers acknowledge: the engine is a component, and should be made by the most specialized people.
Cummins has spent a century focusing solely on powertrains, ultimately outlasting all its competitors.
Conclusion
Daimler set aside its pride, Isuzu sheathed its edge, and Hino withdrew from the battlefield, not because they weren’t strong enough, but because Cummins perfected its specialization.
In the final battle for global commercial vehicle powertrains, Cummins has won, won cleanly and decisively, without dispute.
In the future, every heavy-duty, medium-duty, and light-duty truck on the world’s roads will most likely be equipped with a Cummins engine.
This marks the end of an era: the golden age of automakers developing their own engines has come to a close.
This marks the beginning of an era: a new era has arrived where independent powertrain giants dominate the supply chain.
