Cummins Inc. said it has signed a memorandum of understanding with Vietnam Motors Industry Corp. to create a 50-50 joint venture to produce on-highway diesel engines in Vietnam.
The agreement was reached late last month by Cummins Chairman and Chief Executive Officer Tim Solso and Nguyen Van Khoa, Vinamotor’s chairman.
State-owned Vinamotor is Vietnam’s largest commercial vehicle producer. The country currently has no local engine production, Cummins said.
The agreement outlines the parameters of the joint venture, which is contingent on the results of a feasibility study, which Cummins expects to be completed in January.