Cummins Inc. announced Wednesday that it has reached an agreement with a major automotive manufacturer to produce and market a light-duty, diesel-powered engine. For competitive reasons, Cummins’ original equipment manufacturer partner in the venture has asked to remain confidential.
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 pounds gross vehicle weight, including standard pickup trucks and sport utility vehicles. Certain bus, marine and industrial applications also will be served by this engine family.
The first vehicles with this engine are expected to be ready for the market by the end of the decade. Cummins anticipates that this diesel engine will provide an average of 30% fuel savings, depending on the drive cycle, over gasoline-powered engines for comparable vehicles.
Cummins has not yet selected a manufacturing site for the new engine, but has narrowed its list of possible sites.
“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.”
Cummins expects to have added 600 new jobs two years after product launch, with further growth depending on volumes.