COLUMBUS, Ind. (Aug. 31, 2005) — Cummins Inc. and Scania CV AB have signed a joint venture agreement to produce next-generation fuel systems for heavy-duty on-highway trucks.
Cummins-Scania XPI Manufacturing LLP is a 50-50 joint venture, which builds on Cummins-Scania partnerships on fuel systems development and manufacturing that date to 1992. The two companies currently work together in Columbus, Ind., to produce the HPI fuel system, which eventually will be replaced by the XPI (Xtra-High Pressure Injection) system.
The XPI common rail fuel system is expected to be manufactured by the joint venture company located at the Cummins Fuel Systems facility in Columbus and at the Cummins plant in Juarez, Mexico.
“The XPI system represents the leading edge of fuel systems technology and is a continuation of our strong relationship with Scania,” said Cummins President and Chief Operating Officer Joe Loughrey. “The XPI system will be instrumental in allowing Cummins to meet future EPA on-highway requirements and in keeping Cummins at the forefront of emission technology.”
Cummins CEO Tim Solso and Leif Ostling, president and CEO of Scania, signed the joint venture agreement at Cummins headquarters. The initial investment in the new company is expected to be $31 million, split evenly between the partners.
“From Scania’s side, we are glad to be able to present the new joint venture. It is a natural development of our long-standing and successful cooperation with Cummins regarding the HPI system, our current high-pressure injection system. The XPI system will enable us to offer customers the best possible operating economy and to reduce emission levels beyond what is possible with existing technology,” says Hasse Johansson, group vice president and head of Research and Development at Scania.
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