Cummins and JAC May Team up to Build Engines
March 23,2017
www.chinatrucks.com: Recently, some insiders reveals that Cummins may team up with JAC to form a joint venture to manufacture new engines, with main products probably being heavy-duty engines with large displacement.
JAC needs its own engines due to increasing production
Seen from the whole commercial vehicle market, there is a rising demand for JAC heavy trucks (mainly GALLOP tractors) in recent years. What’s more, JAC will launch a brand new model, K7 tractor (Kuayue). Considering from this perspective, JAC may be a black horse in Chinese commercial vehicle industry.
Despite an increasing sales volume, JAC still suffers deficiency in the “core parts” of heavy trucks. Now engines adopted by JAC are mostly provided by Weichai, Yuchai, FAWDE and MAN, and a few with ISG engines. From JAC’s perspective, all these engines have something in common that they are all provided by other suppliers, which means the core part of a heavy truck is controlled by others and might cause a fatal blow if something unexpected happens.
Cummins’ cooperation with JAC will be a win-win solution
As is known to all, Cummins developed very well, and we can say that Cummins in China market is just like fish in the water, with the market shares increasing continuously.
Now the domestic manufactures producing Cummins engines are Dongfeng Cummins, Foton Cummins and Xi’an Cummins. Dongfeng Cummins supply its products exclusively to Dongfeng, and have no cooperation with others. Foton Cummins’ large displacement engines are main for Foton. And SHACMAN is the major customer of Xi’an Cummins.
The cooperation between Cummins and JAC will amend the deficiency in the “heart” of JAC heavy trucks. What’s more, this will help Cummins further extend its market share.
Source : www.chinatrucks.com
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Tags : Cummins JAC GALLOP Engine
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