27 July 2006

Cummins Inc. announced it has reached agreement with a major automotive manufacturer serving the North American market to produce and market a light-duty, diesel-powered engine. The name of the automotive manufacturer was not disclosed.

As part of the agreement, Cummins will develop and manufacture a family of high-performance, light-duty diesel engines for a variety of automotive applications in vehicles below 8,500 lbs gross vehicle weight, including standard pickup trucks and sport utility vehicles. Certain bus, marine and industrial applications also will be served by this engine family.

The first vehicles with this engine are expected to be ready for market by the end of the decade. Cummins anticipates that this diesel engine will provide an average of 30% fuel savings, depending on the drive cycle, over gasoline-powered engines for comparable vehicles.

The concept for this product is the result of a nine-year partnership between Cummins and the US Department of Energy (DOE).

The manufacturing site for the new engine has not yet been selected. Cummins expects to have added 600 new jobs approximately two years after product launch.

Source: Cummins