Cummins and Volkswagen to develop new engine

Charleston Regional Business Journal
Staff
August 16, 2010

Charleston-based Cummins MerCruiser Diesel and Volkswagen have announced a long-term agreement to develop marine engines under the CMD brand.

The companies are developing marine engines of less than 5 liters displacement to comply with future emissions standards. Volkswagen, which manufactures diesel marine engines of up to 350 horsepower, will make the new engine line at its plant in Salzgitter, Germany. The company’s headquarters is in Wolfsburg, Germany.

Cummins MerCruiser Diesel, which manufactures marine propulsion systems, will continue to make engines of more than 5 liters displacement using Cummins base engines at the company’s plants in Charleston and in Darlington, England. Cummins MerCruiser Diesel is a joint venture between Cummins Inc. and Mercury Marine.

“We are delighted with this union,” said Alex Savelli, president of Cummins MerCruiser Diesel. “It brings together the best minds and capabilities in the field of marine propulsion systems. For engines below 5 liters we are convinced the relationship with Volkswagen will put us in an excellent position to meet the requirements of the new exhaust legislation for the marine industry.”

Starting in January, all current Volkswagen marine engines will be sold exclusively by Cummins MerCruiser Diesel and marketed under the CMD brand, the companies said.

The partnership is based on the Environmental Protection Agency’s Tier 3 emissions standard in the United States and the RCD2 emissions standard that takes effect in 2014 in Europe for this range of engines. The new standards prescribe significantly lower thresholds for emissions of nitrogen oxides and other pollutants, the companies said.

“Our alliance will not only culminate in new products that set the ecological benchmark in their class but will also bring added value with regard to reliability, reduced noise and vibrations, size, weight and power density, and will complement the complete line of engine, drive and helm/control systems currently available from CMD,” Savelli said.

Volkswagen officials heralded the agreement as a union beneficial for both companies.

“The name of Volkswagen stands for engines of the highest technological standard,” said Werner Neubauer, a member of the board of management of the Volkswagen brand responsible for components. “The strategic marine business offers significant potential for both companies.”

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