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Chrysler secures Cummins contract

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Chrysler secures Cummins contract

02/04/2010, 12:34 AMBY MARK KLEIS

In a move that was expected by both parties and industry analysts alike, Chrysler has secured a contract with diesel engine supplier Cummins, to continue production of the 6.7-liter six-cylinder turbodiesel for Ram Heavy Duty pickups and commercial chassis trucks. The contract extension means that the 21-year business relationship will remain secure into the near future.

Despite Chrysler’s struggles due to an aging portfolio in an otherwise very fresh market, Chrysler maintains a strong reputation concerning its diesel engines. The Cummins diesel is often revered as the best diesel in the light-duty truck market – making the relationship with Cummins vital for Chrysler’s Ram brand to remain a leader in the segment.

“Cummins and Chrysler have a long and important history together,” said Dave Crompton, vice president and general manager of midrange engines at Cummins.

“The Chrysler business continues to be a key part of our midrange engine business, and we’re proud to continue working with Chrysler to develop best-in-class products that customers can depend on,” said Crompton.

Cummins has produced 1.7 million diesels for Chrysler thus far in their relationship, and although neither party has disclosed the exact length of the extension, Cummins hinted that it is a “multi-year extension.”



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