Modine Lands Truck Business with DaimlerChrysler
Modine Manufacturing Co. (Racine, WI), a a manufacturer of thermal management systems and components for vehicles, fuel cells and electronics, has been awarded a long-term contract by DaimlerChrysler AG (Stuttgart, Germany) to supply engine-cooling modules for heavy-duty Freightliner trucks, and to become a development partner for Mercedes-Benz trucks in Europe. The total contract value to Modine is about $50 million per year. The original contract is for 10-years, but can be renegotiated beyond the initial term.
The long-term contract between Modine and DaimlerChrysler will apply to heavy-duty trucks under the Freightliner brands in North America. The contract calls for Modine to supply The Freightliner Group (Portland, OR) with thousands of engine-cooling modules per year beginning in fall 2006. The modules will be manufactured at Modine's plant in Trenton, MO. Modine also becomes a development partner for Mercedes-Benz Truck in Europe under the contract. DaimlerChrysler is the parent company for both truck manufacturers.
DaimlerChrysler is looking for ways to meet the tighter emissions standards worldwide on heavy-duty truck engines. The US Environmental Protection Agency begins enforcing the new standards in 2007 and the European emission regulations become effective in 2010. In heavy trucks, more heat-transfer components and equipment are required in order to reduce emissions.