Engine manufacturers Cummins and International Truck & Engine Corporation have agreed to end discussions on a potential heavy-duty engine development and manufacturing joint venture.

Cummins indicated that it will continue to explore a variety of approaches to restructuring its participation in the North American heavy-duty truck engine market.

Cummins noted that over the last several months it had signed long-term supply agreements with three of the world’s leading truck manufacturers — PACCAR, International Truck and Engine Corporation, and Volvo Trucks North America. Implementation of the agreements is proceeding as planned, and will allow Cummins and its partners to improve their combined cost structure. Cummins also confirmed that its engine product line will meet the deadline to produce lower emissions engines as outlined in a consent decree Cummins signed in 1998.

Cummins continues to implement a series of restructuring steps, primarily in its engine business, that were announced in December 2000 and are expected to yield $55m per year in savings by the end of 2001.

Cummins, headquartered in Columbus, Indiana, is the world’s largest producer of commercial diesel engines above 50 horsepower. The company provides products and services for customers in markets worldwide for engines, power generation, and filtration. In 2000, Cummins reported record sales of $6.6bn.