As Cummins continues to look for ways to make its heavy truck engine business profitable, the company's negotiations with International Truck and Engine Corp. on a joint engine-making venture have ended.

Cummins announced yesterday that the two companies had mutually agreed to end discussions on a potential heavy-duty engine development and manufacturing joint venture.
According to published reports, Cummins has sought financial assistance from the states of Indiana and New York that would have allowed investment in the joint venture with International. A company spokesman told Truckinginfo.com that although talks with International have ended, the company is still seeking the $35 million Indiana loan.
Company officials say they will continue to explore a variety of approaches to restructuring Cummins' participation in the North American heavy-duty truck engine market.
Over the past several months, Cummins has signed long-term supply agreements with Paccar, International and Volvo Trucks North America. By working more closely with OEM partners, the company hopes to cut its costs. (See "Cummins Cans Customer Discounts," 5/8/2001)
Other restructuring steps announced in December are expected to save $55 million a year.