Cummins to add light-duty diesel

July 26, 2006
Cummins Inc. today announced it has reached agreement with a major automotive manufacturer serving the North American market to produce and market a light-duty, diesel-powered engine

Cummins Inc. today announced it has reached agreement with a major automotive manufacturer serving the North American market to produce and market a light-duty, diesel-powered engine. Cummins did not specify the automaker upon its request “for competitive reasons.”

As part of the agreement, Cummins will develop and manufacture a family of high-performance, light-duty diesel engines for a variety of automotive applications in vehicles below 8,500 lbs. GVW, including full-size pickup trucks and sport utility vehicles. Certain bus, marine and industrial applications also will be served by this engine family.

The first vehicles with these engines are expected to be ready for market by the end of the decade. Cummins said the new engine will provide an average of 30% fuel savings over gasoline-powered engines in comparable vehicles.

“This agreement gives the driving public an even greater opportunity to experience the benefits of a new class of vehicles powered by a high-performance, fuel-efficient, clean diesel engine made by Cummins," said Tim Solso, Cummins chairman and CEO."This line of diesel engines also will fuel the growth of an exciting new market in which Cummins does not currently participate.”

Cummins has not yet selected a manufacturing site for the new engine.

“Cummins is looking for a community that has a cost-competitive, suitable facility and the right resources available,” said Jim Kelly, president of the Engine Business. “We also will seek state and local economic incentives from the states that are candidates for this business.”

Investment banking firm Bear Stearns has speculated that Nissan is a likely customer for the engine most likely for use in its Titan pickup truck.

For more information, go to www.cummins.com/cmi/content.jsp?siteId=1&langId=1033&dataId=1092&newsInfo=true&menuId=4

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