China’s Anhui Jianghuai Automobile Co Ltd (JAC Motors) announced last week it has established a new joint venture company with US diesel engine manufacturer Cummins.

The new company was finally established following last year’s acquisition by Cummins of US truck-maker Navistar’s 50% stake in JAC-Navistar Diesel Engine Company, an engine-making joint venture with JAC Motors.

The two companies had indicated back in May 2018 that a new joint venture would be established following the Cummins acquisition. It will continue to operate the existing manufacturing facilities in Hefei in Anhui Province.

The new joint venture will focus on the production of light-and mid-range diesel engines for JAC Motors and other commercial vehicle manufacturers in China and overseas. It will introduce new products that meet increasingly stringent emission standards globally.

The new partnership will bring Cummins and JAC Motors closer together, while leveraging the US engine manufacturer’s diesel technology expertise. Cummins said it will also remain a close partner with Navistar.

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By GlobalData