Cummins, Fiat end joint diesel engine venture

The European Engine Alliance was established in 1996 as a joint venture between Cummins and Fiat units Iveco NV--Fiat's buses and commercial vehicles segment--and New Holland (now CNH Global) to develop new 4, 5 and 6-liter diesel engines.

The new arrangement gives Fiat's Fiat Powertrain Technologies unit full ownership of EEA, including manufacturing assets in Turin, Italy.

"Full control of EEA will enable Fiat Powertrain Technologies (FPT) to develop the new generation of engines," said Alfredo Altavilla, chief executive of FTP. The unit produces and sells engines and transmissions to Fiat subsidiaries and other parties. He said Fiat Powertrain already has started substituting CDC engines, and this deal will allow CNH and Iveco to leverage emission and fuel consumption technologies.

Columbus, Ind.-based Cummins will receive CNH Global's 50-percent stake in joint venture Consolidated Diesel Corp., with the Whitakers, N.C.-based company becoming a unit of Cummins.

Consolidated Diesel was established in 1980 by Cummins and Case Corp., which is now a unit of CNH.

Financial terms of the deal weren't disclosed.