CUMMINS BUYS NAVISTAR’S SHARE OF CHINA JV
Cummins and China's JAC Motors will form a 50-50 joint venture after Cummins purchased Navistar’s 50% equity of the JAC-Navistar Diesel Engine Co. joint venture.
The joint venture will maintain its operations at the existing manufacturing facility in Hefei. Cummins currently supplies light-duty, mid-range and heavy-duty engines to JAC Motors for its domestic market in China as well as its global operations. The JV will continue offering customers diesels for trucks and buses meeting China National Standard 5 (NS 5) engines and focus on developing new. Originally formed in 2010, the Navistar-JAC venture was dedicated to producing Navistar’s MaxxForce 3.2, 4.8, 7.2 and JAC’s 2.8 4DA1 Cummins said it will continue to maintain a strong relationship with Navistar, to which it supplies a range of medium- and heavy-duty truck engines.The ownership change of the joint venture is subject to regulatory approval and the operations of the new joint venture are expected to commence following completion of all approvals.