Cummins Names Chrysler as Customer on Light-Duty Diesel Engines Line

Plans $250-million capital investment

October 12, 2006 -- Engine builder Cummins Inc. will build its new line of light-duty “clean diesel” engines at its Columbus, IN, Engine Plant, starting no later than 2010. Preparations for the manufacturing lines will begin midway through next year. The company announced this week that the new engine line will result in 600 to 800 positions within two years of the product launch. Initial employment is estimated at about 200.

The project was announced in July as a joint venture with an unnamed automaker. Now, Cummins reports DaimlerChrysler is the leading customer for the light-duty diesel engine, which power vehicles under 8,500 lb gross vehicle weight – a category that includes SUVs and standard pickup trucks. Cummins has indicated that the new engines will deliver fuel savings averaging 30% over current gas-powered applications, depending on the drive cycle.

The estimated capital investment at the Columbus plant is $250 million.

Cummins chairman and CEO Tim Solso stated: "We know customers for this product will demand outstanding performance, terrific fuel efficiency, and car-like noise characteristics. Cummins is using its technology leadership to meet all of those criteria, while providing the driving public with an exciting new clean diesel engine."

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