Cummins and European manufacturer Scania 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 that builds on partnerships between the two companies that date back almost 14 years. The initial investment in the new company is expected to be $31 million, split evenly between the partners.
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 will be instrumental in allowing Cummins to meet future EPA on-highway requirements and in keeping Cummins at the forefront of emission technology,” said Cummins President and Chief Operating Officer Joe Loughrey.
The first XPI systems will be produced in early 2006.