Beijing Foton Cummins Engine Company Limited (BFCEC), a 50/50 joint venture between Cummins Inc. and China’s Beiqi Foton Motor Company (Foton Motor) have officially begun production of Cummins light-duty, high-performance ISF diesel engines.
With a power range from 109 – 170 horsepower, the new ISF2.8 and ISF3.8 have been developed to produce high performance with low weight, making them well suited for light commercial applications such as trucks, vans, and utility vehicles, as well as small construction equipment and industrial applications.
These two clean diesel engines will meet stringent on-highway and off-highway emission standards worldwide, including Euro IV and above. The ISF engines will be supplied to both the China market and to markets outside the country.
Together, Cummins and Foton Motor have invested $146 million in the joint venture. BFCEC will have an annual capacity of 400,000 units. When operating at full capacity, BFCEC will be Cummins’ highest volume manufacturing plant and one of the largest light-duty engine manufacturing facilities in China.
“The opening of BFCEC marks Cummins’ official entry into China’s booming light-duty diesel market. We are honored to take the first step hand in hand with Foton, which is a demonstrated leader in China automotive industry,” said Tim Solso, Cummins Chairman and Chief Executive Officer. “By combining our proven technology with a strong local partner, which offers a significant OEM base for our products, Cummins is poised to significantly expand its portfolio of engine products in the important China market, where the Company has enjoyed considerable success over the years.”
Foton, founded in 1996, is the largest producer in the light-duty truck market in China, selling more than 329,000 units in 2008. The light-duty truck market in China produced 1.17 million units in 2008.
“We are delighted to be able to complement our vigor and strength with Cummins’ expertise and leading technology,” said Wang Jinyu, General Manager of Beiqi Foton. “Working with Cummins offers us invaluable access to best-in-class light-duty engines, which will be vital in building the unique competitive advantage of Foton vehicles in the China market, as well as in our efforts to penetrate into the international markets.”
BFCEC represents a further expansion of Cummins' product line in China, where the Company already is the leading foreign producer of heavy-duty and mid-range diesel engines. Cummins began licensing its engine technology in China in 1981 and formed its first joint venture in the country in 1995. Today, Cummins operates 26 facilities in China - including 15 manufacturing sites - representing all areas of the Company's business.