Columbus-based Cummins Inc. (NYSE: CMI) has formed a joint venture with a Chinese automaker. The collaboration with JAC Motors involves Cummins’ acquisition of Navistar’s half of the JAC-Navistar Diesel Engine Co. The joint venture will maintain its manufacturing operations in China. The deal still requires regulatory approvals.
Cummins Group Vice President of China and Russia Steve Chapman says "I am delighted that Cummins is expanding our long-term relationship with JAC Motors, one of the most respected automotive companies in China. 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."
JAC Motors currently uses light-duty, mid-range and heavy-duty engines for its domestic customers in China and its global operations. JAC Motors General Manager Xiang Xingchu says "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. 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 and JAC Motors are not releasing financial terms of the agreement. JAC Motors is officially known as Jianghuai Automobile Group Co. Ltd. Cummins says its "strong and long-term" relationship with Navistar will continue. The JAC/Navistar joint venture was launched five years ago. You can connect to more about the joint venture by clicking here.