Cummins, Inc. (NYSE: CMI) and Anhui Jianghuai Automobile Co., Ltd. (JAC Motors) (SH: 600418) announced today that the two parties will form a 50:50 joint-venture after Cummins purchased Navistar’s 50 percent equity in the JAC-Navistar Diesel Engine Co. (JND).
“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 VP of 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 new joint venture will continue its operations at the 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 leading NS V diesel engines and focus on developing new products that meet NS VI standards.
“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.”
Cummins continues to have a strong and long-term partnership with Navistar.
“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 of Navistar.
The ownership change of the joint venture is subject to regulatory approval. The operations of the new joint venture are expected to commence following completion of all approvals.
About Cummins, Inc.
Cummins, Inc., a global power leader, is a corporation composed of complementary business segments that design, manufacture, distribute and service a broad portfolio of power solutions. The company’s products range from diesel and natural gas engines to hybrid and electric platforms, plus related technologies, including battery systems, fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Ind. (U.S.A.), since its founding in 1919, Cummins currently employs approximately 58,600 people who are committed to powering a more prosperous world. Cummins serves customers in about 190 countries and territories through a network of some 500 company-owned and independent distributor locations and approximately 7,500 dealer locations. Cummins earned about $1 billion on sales of $20.4 billion in 2017. Press releases are posted at www.cummins.com. Follow Cummins on Twitter at www.twitter.com/cumminsand on YouTube at www.youtube.com/cumminsinc.
About JAC Motors
Officially known as Jianghuai Automobile Group Co., Ltd, JAC Motors was established in 1964 and has been listed on the Shanghai Stock Exchange since 2001. Today, JAC Motors is the leading vehicle brand in China, selling passenger and commercial vehicles in over 100 countries worldwide. Currently, JAC Motors has over 500 dealerships, two overseas tech centers and 19 assembly plants in over 50 countries worldwide, including Latin America, Europe, Africa, Middle East and Asia.
