Cummins forms a JV with JAC Motors after 20 years of business alliance

The joint venture comes after successfully supplying a range of engines to JAC Motors for its Chinese market for the past 20 years.

Autocar Professional BureauBy Autocar Professional Bureau calendar 15 May 2018 Views icon9592 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Cummins forms a JV with JAC Motors after 20 years of business alliance

Cummins and Anhui Jianghuai Automobile (JAC Motors)announced that the two parties will form a 50:50 joint-venture after Cummins purchased Navistar’s 50 percent equity of the JAC-Navistar diesel engine company (JND).

Steve Chapman, Cummins Group vice president, China and Russia said, “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 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. “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.
 
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.

Also read: Julie Furber: Putting up a small team in India to develop products for electrification

 

Tags: Cummins
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