Cummins Renegotiating Engine Deal With Chrysler

INDIANAPOLIS (AP) -- Cummins is renegotiating a contract to make light-duty diesel engines for Chrysler.

Chrysler had canceled the contract as part of its bankruptcy proceedings. But Cummins spokesman Mark Land says that frees Columbus, Ind.-based Cummins to negotiate a deal with the new company created by the sale of most of the automaker's assets to a group led by Italy's Fiat Group SpA.

The cancellation doesn't affect Cummins' deal to make engines for heavy-duty Dodge Ram pickup trucks. The plant that makes those engines was closed last month but Land says it's expected to reopen when Chrysler resumes truck production.

The production line for the light-duty engines is being built at a different Cummins plant in Columbus. Land says that work has been slowed until the situation is clarified.

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