Cummins launches joint venture with JAC

May 11, 2018, Anhui Hefei. Cummins Corporation(New York Stock Exchange stock code:CMI) and Anhui Jianghuai Automobile Group Co., Ltd.(be called for short JAC. Shanghai Stock Exchange Stock Code: 600418) formally signed an agreement, established a 50:50 joint venture company. Earlier, Cummins Corporation has entered into an equity transfer agreement with Navistar Corporation to purchase a 50% stake in Anhui Jianghuai Navistar Diesel Engine Co., Ltd. held by Navistar.

Steve Chapman, Group Vice President of Cummins’s China and Russia operations, said: “I am very happy that we can build on the long-term cooperation with JAC. JAC is one of the most respected Chinese automobile manufacturers, we are highly consistent with our values and many concepts. For example, we are guided by our customers' needs and we are determined to strive for excellence in every area.Through intensified cooperation, we will focus on the present and the future, and provide our customers with high-quality, fuel-efficient and environmentally-friendly quality products to achieve the best match and create unique competitive advantages for both partners. "

Steve Chapman (left), vice president of Cummins Group, and Jiang Xinghuai(right), general manager of Jianghuai Automobile , signed a joint venture agreement

The new joint venture company will continue to operate at the Hefei production base. Cummins has a solid long-term cooperation with JAC Motors. Cummins light, medium and heavy-duty engines are widely installed in different models of JAC vehicles and are used in domestic and overseas markets.While providing the market with national five-level standard engine products, the joint venture will focus on the future and create a national six-level standard power solution that meets the market demand.

Jiang Xinghuai, general manager of JAC, placed great expectations on this cooperation upgrade: “The accumulation of more than 20 years of successful cooperation experience has created a very smooth joint venture between JAC and Cummins. We are full of expectations for the broad cooperation between the two sides. The organic combination of JAC's professional market experience and Cummins' world-class power technology and drive system will provide a strong guarantee for the success of the joint venture under the new framework.

Steve Chapman (left), vice president of Cummins Group, and Jiang Xinghuai(right), general manager of Jianghuai Automobile , signed a joint venture agreement

Cummins and Navistar have a solid foundation for cooperation and will continue their long-term cooperation.Persio Lisboa, chief operating officer of Navistar, said: "We are proud of the achievements of our partnership with JAC over the past five years. This strategic move is a win-win choice for all parties."

The changes in equity of the joint venture companies are still subject to relevant government approvals. Both parties will start the actual operation of the new joint venture after all government approvals are completed.