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. Last Updated: 07/27/2016

Daimler to Supply Kamaz With Engines

Daimler, the world's largest truck maker, will supply Kamazwith cleaner-burning engines, saving development costs forKamazasMoscowintroduces stricter laws to clamp down on pollution.

Kamazwill procure more than 7,000 engines from its German ally and shareholder, as well as 15,000 front and rear axles for trucks and buses, the two firms said on Friday.

The deal will help secure jobs inDaimlerTrucks' three German powertrain plants inMannheim,Kassel and Gaggenau, where around 14,000 people in total are employed.

The financial terms of the deal were not disclosed.

"Kamazwill be able to offer its customers the products that would meet world quality standards and set new benchmarks for the Russian truck industry," said the Russian company's general director, Sergei Kogogin.

WithRussiaset to introduce tougher truck emissions standards equivalent to the older Euro IV in 2013, Daimlercan help its partner by supplying Mercedes-Benz OM 457 diesel engines that already fulfill existing Euro V standards currently in place inEurope.

Daimlerwill also provide so-called "Enhanced Environmentally Friendly Vehicle" natural gas engines that emit even fewer pollutants like nitrogen oxides.

The German automotive group will supply axles toKamazin an intermediate step before the two begin manufacturing axles inRussiathrough a planned joint venture.

Daimler, which owns 11 percent directly inKamaz, has steadily been expanding its partnership with the Russian truck maker ever since it was established in 2008.

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