Cummins and JAC Motors form 50:50 joint venture
The JV will continue offering customers NS V diesel engines and focus on developing new products that meet NS VI standards
Cummins and Anhui Jianghuai Automobile Co. Ltd. (JAC Motors) have formed a 50:50 joint-venture after Cummins purchased Navistar’s 50% equity of the JAC-Navistar Diesel Engine Company (JND).
The new joint venture will continue its operations at the manufacturing facility in Hefei, Anhui province, China. 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 customers NS V diesel engines and focus on developing new products that meet NS VI standards.
Steve Chapman, vice president, China and Russia, Cummins Group, 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.”
Xiang Xingchu, general manager of JAC Motors, said: “The joint venture between JAC Motors and Cummins is a natural progression in our successful 20-year relationship. 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.”
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.