Cummins Sets New Chinese Venture for Light-Duty Engines

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ngine maker Cummins Inc. will set up its ninth venture in China to make diesel engines for pickup trucks, vans and other light-duty vehicles, Bloomberg reported Tuesday.

Cummins will set up a $126 million venture with Beiqi Foton Motor Co., China’s biggest maker of light trucks, to produce 3.8-liter diesel engines in 2008 and 2.8-liter engines in 2009, according to a statement today by the Chinese company, Bloomberg said.

The U.S. engine maker, the world's biggest maker of high-powered diesel engines, already has $140 million of investments in China, Bloomberg said.

Cummins will own 50% of Beijing Foton Cummins Engine Co., while Foton and its unit will hold the remainder, the Chinese firm said today in a statement to the Shanghai exchange, Bloomberg reported.

In October, Cummins set an agreement with Dongfeng Motors Co. in China to build heavy-duty diesel engines.

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