Columbus-based Cummins Inc. (NYSE: CMI) and Isuzu Motors Ltd. have announced a new partnership agreement. The companies say the deal formalizes a business structure to bring new diesel and diesel-based powertrains to market.

As part of the Isuzu Powertrain Partnership agreement, the companies will form an alliance board and assign a team to continue the exploration of new opportunities in product technology development, procurement and manufacturing. Cummins Chief Executive Officer Tom Linebarger says the partnership is a terrific opportunity for the companies to leverage their strengths and grow and broaden their product portfolio.

"Isuzu and Cummins recognize the advanced diesel engine is, and will continue to be, an important power choice for global customers in commercial vehicle and industrial applications," said Masanori Katayama, president and representative director of Isuzu. "This is especially true in developed countries where power sources are used for high-intensity operations, as well as in emerging countries where social infrastructure conditions are severe."

The agreement furthers efforts for collaboration between the two companies. In October, Cummins and Isuzu signed a Letter of Intent to evaluate potential areas in which they could work together, which included diesel powertrains.