Diesel engine maker Cummins Inc. announced today that it has concluded its joint ventures with equipment manufacturer CNH Global N.V. (CNH) and Iveco N.V., which are both subsidiaries of the Italian Fiat Group.
Under the new agreement, Cummins will purchase CNH's equity stake in Consolidated Diesel Company (CDC) and will sell its interest in the European Engine Alliance. CDC will become a wholly-owned entity of Cummins, which entered the successful joint venture with Case Corp. in 1980. The joint venture produced more than 2.7 million mid-range engines. Cummins will purchase CNH's 50% interest in CDC.
The European Engine Alliance (EEA) was established in 1996 as a joint venture between Cummins and two Fiat Group companies, Iveco N.V. and New Holland, which is now CNH Global N.V., to develop a new generation of 4-, 5- and 6-liter engines. EEA includes manufacturing assets in Turin, Italy. Cummins will sell its one-third interest in the EEA to Fiat Powertrain Technologies.
"We have enjoyed a long and successful relationship with our partners. This change will essentially be transparent to the CDC employees and to our customers," said Jim Kelly, president of Cummins Engine Business. "On July 1, we celebrated the 25th year of CDC's successful production of engines and components with our employees there, and we look forward to continuing this success together well into the future. Our customers can continue to depend on Cummins and CDC for the quality products and support they have always received."