Cummins to acquire 50% of Momentum Fuel Technologies
By Mike Brezonick29 June 2021
Continuing its ongoing strategy of providing expanded power options, Cummins Inc. announced it has announced it has signed a letter of intent for Cummins to acquire a 50% equity interest in Momentum Fuel Technologies from Rush Enterprises, Inc. No financial details were provided.
The proposed transaction is expected to close later this year, subject to completion of customary pre-closing activities and entering into mutually agreeable transaction documentation. The resulting joint venture between Rush and Cummins will produce Cummins-branded natural gas fuel delivery systems for the commercial vehicle market in North America.
“This collaboration shows Cummins’ continued commitment to natural gas powertrains,” said Srikanth Padmanabhan, president of the Engine Business at Cummins. “This partnership will improve customers service for both CNG and RNG through an improved support network. We are thrilled to expand our network of clean and reliable power solutions.”
The joint venture will offer aftermarket support through Rush Truck Centers dealerships and Cummins distributors which will be able to service both the engine and the fuel delivery system. The partnership between Cummins and Rush Enterprises will benefit customers by providing them with access to an extensive CNG vehicle parts and service network; both Cummins’ and Rush Enterprises’ respective networks, which together represent over 250 locations in the US and Canada, will be equipped with certified technicians and access to a comprehensive CNG vehicle parts inventory.
“The immediate environmental benefits of CNG and RNG, combined with upcoming regulatory requirements, will drive growth in natural gas vehicles for the foreseeable future,” said W.M. “Rusty” Rush, chairman, chief executive officer and president, Rush Enterprises, Inc. “This partnership will enable Rush Enterprises to continue to provide unparalleled support to our customers through our mutual, wide-ranging portfolio of Cummins’ and RushCare aftermarket solutions and keep trucks up and running across the country.”
Rush Enterprises owns and operates Rush Truck Centers, one of the largest networks of commercial vehicle dealerships in the United States, with more than 100 dealership locations in 22 states. The vehicle centers represent truck and bus manufacturers, including Peterbilt, International, Hino, Isuzu, Ford, Fuso, IC Bus and Blue Bird. The centers offer sales of new and used vehicle, aftermarket parts, service and body shop operations, along with financing, insurance, leasing and rental.
A division of Rush Enterprises launched in 2015, Momentum Fuel Technologies, headquartered in the Dallas-Fort Worth Metroplex, is a supplier of complete compressed natural gas (CNG) fuel system solution for Class 6-8 vehicles.