Morning News (Reporter Liu Xiaolin) Beiqi Foton Motor Co., Ltd. (600166) announced yesterday that it will jointly manufacture engines with Cummins, the world's largest car engine manufacturer.

Beiqi Futian said that the total investment of the joint venture company will reach 1.946 billion yuan (about 240 million US dollars), will produce two diesel engines of 2.8 liters and 3.8 liters, not only for the subsidiary cars of Foton and Foton, but also in China and Other countries sell. The term of the joint venture is 30 years. It is expected that the joint venture company will be established in the third quarter of this year and the limited production will be realized in early 2008.

As the world's largest independent automotive engine manufacturer, Cummins is also the largest manufacturer and supplier of diesel engines with more than 50 horsepower in the world. Since entering China in 1975, Cummins has established a cooperative relationship with domestic heavy truck giants including Dongfeng and Shaanxi Heavy Duty Trucks, but it has not yet won any gains in the light truck field.

Beiqi Foton is currently the largest domestic light truck company with sales, and it has always been the Cummins investment route from the industry leader. For Beiqi Foton, if the Foton light truck matches the Cummins engine, the layout of the Futian commercial vehicle industry will also be complete.

View related topics: Cummins - world-class engine manufacturer


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