15 October 1998
Cummins Engine Co. and Mack Trucks Inc.have announced a long term supply agreement. The agreement, said Mack, "will broaden Mack's engine line-up and make Cummins its exclusive supplier of vendor engines."
The agreement has Mack offering, in certain vehicles, Cummins 8.3-liter ISC, the 9-liter ISL, ISX and Signature 600 diesel engines. Mack is positioning these engines as a compliment to its own diesels and said it remains committed to its own 12-liter E-Tech engine, with production levels expected to increase in 1999.
Mack president and CEO Michel Gigou said "this agreement represents an important step in Mack's plan to increase our dominant position in the construction and refuse segments of the market, while aggressively targeting the growing highway segments."
In a second Cummins' move in about as many days, another agreement was announced with Volvo Trucks North America, Inc. Cummins and Volvo will join forces to create "innovative solutions for Volvo Trucks' customers in North America." The Volvo-Cummins agreement covers efforts in the areas of product development, sales, marketing, and customer support. "We are allying ourselves with Cummins because with our mutual strengths in customer support, information products and engines we can create measurable performance breakthroughs in vehicle design and engine systems," Volvo said.
The first result of this effort will be designed for owner-operator segments of the heavy-truck market. Several new Volvo truck models with Cummins engines will be developed and marketed as "Signature Series" products.
Source: Diesel Progress