Cummins Buys Navistar’s Share Of China JV

Cummins and China's (JAC Motorswill form a 50-50 joint venture after Cummins purchased Navistar’s 50% equity of the JAC-Navistar Diesel Engine Co. joint venture.

Cummins Inc. and Anhui Jianghuai Automobile Co. Ltd. (JAC Motors) announced that they will form a 50-50 joint venture after Cummins purchased Navistar’s 50% equity of the JAC-Navistar Diesel Engine Co. (JND) joint venture. No financial details were provided.

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 diesel meeting China National Standard 5 (NS 5) engines and focus on developing new products that meet planned NS 6 regulations.

“I am delighted that Cummins is expanding our long-term relationship with JAC Motors, one of the most respected automotive companies in China,” said Steve Chapman, Cummins group vice president, China and Russia. “Cummins and JAC share similar values and are both committed to bringing our customers the right power solutions at the right time to power their success. By strengthening our relationship, we can focus on becoming more competitive in our markets by developing and offering high-quality, clean and fuel-efficient products.”

“The joint venture partnership between JAC Motors and Cummins is a natural progression in our successful 20-year relationship and we are thrilled about the potential of the partnership,” said Xiang Xingchu, general manager of JAC Motors. “By integrating our equipment expertise with Cummins’ world-class technological and powertrain capabilities, we are confident we have the right formula in place for tremendous success.”

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 liter engines. “We are proud of the work we’ve accomplished through our partnership with JAC over the past five years, and we believe this strategy is a win for all parties,” said Persio Lisboa, COO, Navistar.

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.