Cummins, Navistar Deal Nixed

Engine maker Cummins Inc., and Navistar International Corp. have agreed to end talks on a joint venture to develop and make heavy-duty engines for the Chicago-based truckmaker. Cummins told Indiana legislators last month that Cummins was negotiating with the truckmaker to develop a heavy-duty engine designed to meet 2001 U.S. diesel emission standards. Cummins asked the state to guarantee a $35-million

Engine maker Cummins Inc., and Navistar International Corp. have agreed to end talks on a joint venture to develop and make heavy-duty engines for the Chicago-based truckmaker.

Cummins told Indiana legislators last month that Cummins was negotiating with the truckmaker to develop a heavy-duty engine designed to meet 2001 U.S. diesel emission standards.

Cummins asked the state to guarantee a $35-million loan for the engine project because the company couldn't borrow on its own.

“We were unable to reach a mutually acceptable agreement,” said Cummins spokeswoman Dorothy Brown Smith.

Cummins CEO Tim Solso told Indiana legislators two weeks ago that the company spent an estimated $500 million on the engine project and would need to invest another $300 million to $500 million.

“It's a changing industry, and people are talking all the time,” said Roy Wiley, a spokesman for Navistar, of the talks with Cummins.

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