MTU, VM finalize deal … Cummins and DaimlerChrysler extend supply agreement … MHI shipping engines to Perkins … Deere & NREL ink natural gas contract

Diesel Progress North American Edition, Dec, 2003

MTU and VM have signed an agreement in which the off-highway engines built by VM Motori Sp.A. in Italy will be made available to the DaimlerChrysler Off-Highway sales organization. The agreement covers MTU Friedrichshafen GmbH, the off-highway segment of Detroit Diesel Corp. (DDC) and the off-highway segment of the Commercial Vehicles Division of DaimlerChrysler AG. In addition to the worldwide distribution of VM engines, DaimlerChrysler Off-Highway will offer worldwide service and global availability of spare parts.

The agreement brings the VM series D700, HR and SUN two-, three-, four- and six-cylinder engines with an output of 30 to 300 hp into the fold, as well as VM Motori generators and pump sets which will also be integrated into DaimlerChrysler Off-Highway.

Cummins Inc. announced that it has extended its exclusive supply agreement with DaimlerChrysler Corp.'s Chrysler Group for diesel engines used in the Dodge Ram heavy-duty pickup truck. Although specific terms of the agreement were not disclosed, the engine system agreement includes consideration of Cummins as a supplier for the diesel engine aftertreatment system. The agreement additionally paves the way for collaboration on diesel engine technology beyond the length of the contract.

Cummins supplies the 5.9 L turbo-diesel for use in the Dodge Ram 2500 and 3500 series pickup trucks. The diesel engine exhaust system components under consideration would be provided by Fleetguard, a Cummins business unit. Earlier this year, Cummins shipped its millionth diesel engine for the Dodge Ram.

Mitsubishi Heavy Industries Ltd. said it has begun supplying small diesel engines on an original equipment manufacturing basis to Perkins Engines Co. Mitsubishi Heavy is supplying 3.3 L diesels with outputs from 71 to 80 hp, the same engines used in its own forklifts and generators. The engines are sold by Perkins as its 800 series and are a family of two, four-cylinder diesels and are available as both naturally aspirated, indirect injection (IDI) and turbocharged, direct injection (DIT) versions.

Mitsubishi said the engines comply with U.S. Tier 2 emission regulation. MHI invested around 1.7 billion yen in its plant in Sagamihara, Kanagawa Prefecture, to boost its output capacity.

John Deere Power Systems said it has signed a subcontract with the U.S. Dept. of Energy's National Renewable Energy Laboratory (NREL). The contract provides funding in cost sharing to assist Deere's natural gas engine development to meet or better the U.S. Environmental Protection Agency (EPA) 2004 requirement of 2.5 g/bhp-hr N[O.sub.x] plus nonmethane hydrocarbon (NMHC) for heavy-duty engines. The subcontract continues the development and commercialization of Deere's 8.1 L 6081HFN04 natural gas engine for transit bus, refuse, pickup and delivery markets.

Fleetguard Emission Solutions (FES), Nashville, Tenn., a wholly owned subsidiary of Cummins Inc., and Environmental Solutions Worldwide Inc. (ESW), Telford, Pa., have announced the signing of exclusive long term marketing and distribution agreements and preferred supplier agreements for ESW's Particulate Reactor; a metallic, diesel oxidation catalyst. The agreements cover OEM and retrofit applications in North American, South American and Western European markets as well as markets in Japan, Korea, Hong Kong, China, Taiwan, India and Australia.

Deere & Co. said it has sold its stake in Sunstate Equipment Co. LLC, Phoenix, Ariz., to Sunstate. As a result of the sale, Deere said it expects to record a pretax gain of approximately $30 million, or $22 million after-tax, in the fiscal first quarter of 2004. Sunstate is in the equipment rental business. Terms of the sale were not disclosed.

Iveco Motors of North America Inc., Carol Stream, Ill., has announced the signing of an exclusive agreement with Enerflex Systems Ltd. for the distribution and service of diesel engines and generator sets, as well as spare parts, for Canada and its territories. Iveco Motors North America is part of the Iveco Engine Business Unit, Torino, Italy. Iveco recently began operations in Carol Stream to service its distributors in Canada and the United States.

Stewart & Stevenson Services Inc. has purchased certain assets of Industrial Power & Service Inc., Longview, Texas. Stewart & Stevenson, will operate the Longview operations as a customer service center.