Eaton plans Mobility separation, creating standalone supplier for commercial vehicles

Eaton plans to separate its Vehicle and eMobility segments into a standalone company, a move that could reshape how fleets and OEMs source transmissions, clutches, and EV components used across heavy- and medium-duty vehicles.

The company hopes to spin-off its Mobility Group into an independent, publicly traded company by the end of the first quarter of 2027, pending regulatory and board approvals. The separation removes Eaton’s commercial vehicle and propulsion businesses from its core Electrical and Aerospace portfolio, giving Mobility its own capital strategy and focus.

“The separation of Mobility advances Eaton’s bold new 2030 growth strategy to lead, invest, and execute for growth," said Paulo Ruiz, Eaton chief executive officer. “We are incredibly proud of what our Mobility team has built and believe that now is the right time to separate that business. As an independent company, Mobility will be able to build on its strong foundation as a leading supplier across the globe and have the strategic focus and agility to allocate capital and resources to best serve its customers, pursue independent growth opportunities, and drive innovation.”

Mobility currently supplies critical systems that directly affect uptime and serviceability, including transmissions and clutches in the Americas and high-voltage EV fuses. As a standalone company, the Mobility Group will gain flexibility to invest independently in product development, tooling, and integration for heavy-, medium-, and light-duty trucks as well as off-highway equipment.

For fleets, the separation matters because Eaton Mobility’s focus will be entirely on components and products that impact uptime, safety, and technician workflows. A dedicated Mobility supplier may speed up innovation and support for both traditional and electrified powertrains.