Cummins Inc. and the Fiat Group subsidiaries CNH Global N.V.
and Iveco S.p.A. have agreed to unwind their existing joint
ventures in the area of diesel engines.
Cummins has disposed of its one-third interest in EEA
(European Engine Alliance), a joint venture formed in 1996
as a three-way partnership among Cummins, Iveco (the Fiat
Group’s commercial vehicles and buses subsidiary), and New
Holland (now part of CNH - Case New Holland, the
majority-owned Fiat Group subsidiary which operates in the
agricultural and construction equipment businesses) to
develop and produce the NEF (New Engine Family) engine
range. As a result of this transaction, FPT (the Fiat
Group’s sector which develops, produces and sells engines
and transmissions to both Fiat Group’s subsidiaries and to
third parties worldwide) will wholly manage EEA.
Cummins has agreed to acquire CNH’s 50 percent stake in CDC
(Consolidated Diesel Corporation), a joint venture company
set up in 1980 by Cummins and Case Corporation (now part of
CNH). CDC, which is located in Whitakers, N. C., will become
a wholly-owned entity of Cummins Inc.
Alfredo Altavilla, CEO of FPT, said: "This transaction
confirms Fiat Group’s strategy to further strengthen its
engine and transmissions capabilities under the guidance of
FPT. Full control of EEA will enable FPT to develop the new
generation of NEF engines. At the same time, FPT has already
started gradual substitution of the CDC engines leveraging
its new product portfolio. Moreover, this transaction
enables CNH and Iveco to take advantage of Fiat Group’s
synergies and to further leverage on FPT’s key technology
developments particularly towards overcoming the challenges
of increasing engine emission regulations and attention on
fuel consumption."
