Cummins continues business restructuring
Cummins Inc. and International Truck and Engine Corporation have agreed to end discussions on a potential heavy-duty engine development and manufacturing joint venture.
But Cummins said it will continue to explore ways to restructure its participation in the North American heavy-duty truck engine market, and its engine product line will meet the deadline to produce lower emissions engines as outlined in a consent decree the company signed in 1998.
Over the last several months the company had signed long-term supply agreements with PACCAR, International Truck and Engine Corporation, and Volvo Trucks North America.
Implementation of the agreements is proceeding as planned, and will allow Cummins and its partners to improve their combined cost structure.
Cummins is also restructing its engine business, as part of a series of steps that were announced in December 2000 and are expected to yield $55 million per year in savings by the end of 2001.
Cummins also recently completed a joint venture agreement with Westport Innovations that focuses on the development and sale of high performance natural gas engines for vehicular and stationary engine markets.
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