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Cummins Confirms Diesel Engine Deal With Nissan

Cummins Inc. (CMI) confirmed an agreement to supply Nissan Motor Co. (NSANY) with a diesel engine for its Titan pickup trucks.

The Wall Street Journal reported Monday that the deal was expected.

At a showcase of its product and technology portfolio in California, Nissan said Tuesday it will offer the Cummins 5.0L V8 Turbo Diesel in the next generation Titan. Nissan isn't announcing launch dates, but engineering prototype trucks powered by the Cummins engine are currently undergoing extensive on-highway testing.

The V8 program is planning to add to its 300-person workforce over the next several years and at maturity expects to employ about 800 workers, Cummins said.

In addition to its partnership with Nissan, Cummins currently supplies diesel engines for some Chrysler Group LLC pickup trucks. Cummins also is developing a version of the V8 Turbo Diesel for commercial vehicle customers.

Cummins' financial performance recently has been hurt by weaker engine demand from heavy-duty truck makers and manufacturers of mining and construction machinery.

Cummins is the largest supplier of heavy-duty truck engines in North America, accounting for about 40% of the market.

Cummins shares were recently up 75 cents at $123.95. The stock is up 14% so far this year.

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