Cummins to buy engine company

COLUMBUS, Ind. — Cummins says that it has concluded its joint ventures with CNH Global N.V. (CNH) and Iveco N.V., two companies of Italian vehicle maker Fiat Group. Under the new agreement, however, North Carolina-based CDC will become a wholly-owned entity of Cummins.

Cummins entered the highly successful joint venture with Case Corporation in 1980, and has produced more than 2.7 million mid-range engines.

Cummins will purchase CNH’s 50 percent interest in CDC.

The European Engine Alliance (EEA) was established in 1996 as a joint venture between Cummins and two Fiat Group companies, Iveco N.V. and New Holland, which is now CNH Global N.V., to develop a new generation of 4, 5 and 6-liter engines.

Cummins will also sell its one-third interest in the EEA to Fiat Powertrain Technologies.

"We have enjoyed a long and successful relationship with our partners. This change will essentially be transparent to the CDC employees and to our customers," said Jim Kelly – President of Cummins Engine Business.