Cummins Inc has mutually agreed with International Truck and Engine Corp to end discussions on a potential heavy-duty engine development and manufacturing joint venture. Cummins indicated that it will continue to explore approaches to restructuring its participation in the North American heavy-duty truck engine market.
Over the past several months, Cummins had signed long-term supply agreements with three leading truck manufacturers: Paccar, International Truck and Engine Corp, and Volvo Trucks North America. Implementation of the agreements is proceeding as planned, and will allow Cummins and its partners to improve their combined cost structure. Cummins also confirmed that its engine product line will meet the deadline to produce lower emissions engines as outlined in a consent decree Cummins signed in 1998.
Cummins continues to implement a series of restructuring steps, primarily in its engine business, that were announced in December 2000 and are expected to yield $55 million per year in savings by the end of 2001.