Cummins Gets Another Automotive Diesel Contract

Posted on July 27, 2006

Cummins Inc. said it has reached agreement with a “major automotive manufacturer serving the North American market” to produce and market a light-duty diesel engine. For competitive reasons, the manufacturer has asked to remain confidential, Cummins said.

As part of the agreement, Cummins will develop and manufacture a family of light-duty diesel engines for a variety of automotive applications in vehicles below 8500 pounds GVW, including standard pickup trucks and sport utility vehicles. Certain bus, marine and industrial applications also will be served by this engine family.

Some press reports say the new engines will be used in SUVs and pick-up trucks.

The first vehicles with this engine are expected to be ready for market by the end of the decade. Cummins said it anticipates that the engine will provide an average of 30 percent fuel savings, depending on the drive cycle, over gasoline-powered engines for comparable vehicles.

Cummins said it has not yet selected a manufacturing site for the new engine, but after an extensive search has narrowed the candidates to a short list of states. Cummins said it expects to add 600 new jobs within two years after product launch. Further growth will depend on volumes.

The concept for this engine is the result of a nine-year partnership between Cummins and the U. S. Department of Energy. The DOE contract began in 1997 because of the federal agency's ongoing interest in energy efficiency in the automotive market.