Cummins Light Duty Diesel May Go To Highest Bidder

Chrysler’s bankruptcy has had a massive ripple effect across the automotive industry. Affecting everyone from suppliers to foreign automaker’s importation plans, the details of the death, and subsequent resurrection of Chrysler’s various contractual obligations could fill a book.

Of course, most of us wouldn’t want to read that book, since it would be filled with complex legalese pertaining to the restructuring of agreements to supply such boring pieces of required parts such as door handles and radio antennae.
That said, one contract that we’re very interested in is one which the old Chrysler held with diesel powerplant producer Cummins. Having entered into an agreement to produce a light-duty diesel engine for the Ram 1500, Chrysler’s bankruptcy saw that agreement nullified, which leaves Cummins holding the bag for a partially developed engine. According the Mark Land, Director of Public Relations at Cummins, that’s ok. Apparently, Chrysler hasn’t made any statements pertaining to their desire to scrap the project completely, but they also haven’t made any steps toward re-entering a similar contract. This means that as far as Cummins is concerned, any engine that comes out of the previous Chrysler agreement is property of Cummins and Cummins alone, which could have an enormous impact on the light truck marketplace as numerous manufacturers would obviously jump at the chance to attach their light duty truck nameplate to the trusted Cummins badge.