Cummins In Another China Venture

Posted on March 7, 2006

Cummins Inc. will set up a $240 million venture to build engines with Chinese vehicle maker Beiqi Foton Motor Co. Ltd. The 50-50 venture, which would be set up in the third quarter, would make 2.8 and 3.8 L diesel engines, Foton said in a statement in the official Shanghai Securities News. The engines would be available as early as 2008, and would be used to power Foton's pick-up trucks and vans.

The venture would also sell the engines to other manufacturers in both the domestic and overseas markets, it added. The venture marks the latest investment by the U.S. engine maker in China. In September, Cummins formed a 50-50 joint venture with Shaanxi Automobile Group to make heavy-duty engines, with an initial investment of $24 million. It also has a $100 million engine venture with Dongfeng Automobile Co. Ltd., a unit of China's number-three vehicle maker.