Cummins, Beiqi Foton Motor form JV

The Indiana-based engine manufacturer, Cummins Inc., has entered into a 50/50 joint venture with Beiqi Foton Motor Co. in China to set up the Beijing Foton Cummins Engine Co. Ltd. (BFCEC). The company said the new joint venture company will manufacture two types of Cummins light-duty, high-performance diesel engines in Beijing and will start production in 2008. Initially the two partners would invest a combined $126 million into BFCEC.

Beijing-based Beiqi Foton Motor is the largest producer in the light-duty truck market in China, selling more than 260,000 units in 2005. The company said the engines will primarily be used in light-duty commercial trucks and pickup trucks although certain types of marine applications also will be served by this engine family.

The joint venture plant would have an annual capacity of 400,000 units and would produce Cummins 2.8-liter and 3.8-liter clean diesel engines. Furthermore, the BFCEC would meet stringent on-highway and off-highway emission standards worldwide, including Euro IV and above.