Staff Reports
Columbus-based Cummins Inc. and a Chinese automotive company have formed a partnership that will expand upon an existing relationship and help them become more competitive in their markets, the companies said.
Cummins, a global power solutions company, and Anhui Jianghuai Automobile Co. Ltd. (JAC Motors) announced Monday that they have formed a 50:50 joint-venture after Cummins purchased Navistar’s 50 percent equity of the JAC-Navistar Diesel Engine Company, Cummins said.
JAC Motors, established in 1964, sells passenger and commercial vehicles in China and to more than 100 countries worldwide.
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, Cummins said.
The new joint venture will continue its operations at the manufacturing facility in Hefei, and will continue offering customers NS V diesel engines and focus on developing new products that meet NS VI standards, Cummins said.
“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 for 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 two companies have had a 20-year relationship, 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,” he said.
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, Cummins said.
