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CUMMINS INC. (CMI) News
Cummins and JAC Motors Form Joint Venture Partnership
Cummins Inc. (NYSE: CMI) and Anhui Jianghuai Automobile Co. Ltd. (JAC Motors) (SH: 600418) announced today that the two parties will form a 50:50 joint-venture after Cummins purchased Navistar’s 50 percent equity of the JAC-Navistar Diesel Engine Company (JND).
“I am delighted that Cummins is expanding our long-term relationship with JAC Motors, one of the most respected automotive companies in China,” said Steve Chapman, Cummins Group Vice President, China and Russia. “Cummins and JAC share similar values and are both committed to bringing our customers the right power solutions at the right time to power their success. By strengthening our relationship, we can focus on becoming more competitive in our markets by developing and offering high-quality, clean and fuel-efficient products.”
The new joint venture will continue its operations at the manufacturing facility in Hefei. Cummins currently supplies light-duty, mid-range and heavy-duty engines to JAC Motors for its domestic market in China as well as its global operations. The JV will continue offering customers leading NS V diesel engines and focus on developing new products that meet NS VI standards.
“The joint venture partnership between JAC Motors and Cummins is a natural progression in our successful 20-year relationship and we are thrilled about the potential of the partnership,” said Xiang Xingchu, General Manager of JAC Motors. “By integrating our equipment expertise with Cummins’ world-class technological and powertrain capabilities, we are confident we have the right formula in place for tremendous success.”
Cummins continues to have a strong and long-term partnership with Navistar.
“We are proud of the work we’ve accomplished through our partnership with JAC over the past five years, and we believe this strategy is a win for all parties,” said Persio Lisboa, COO, Navistar.
The ownership change of the joint venture is subject to regulatory approval and the operations of the new joint venture are expected to commence following completion of all approvals.Get Started today! - Risk Free