80% of Foton Cummins Engine Parts Purchased from China

Beijing Foton Cummins Engine Co., Ltd. will start production of 3.8-liter and 2.8-liter engines, and 80% of parts and components will be purchased from China.

“The two engines were designed based on localized procurement to reduce costs and shorten the supply chain,” said Wang Ning, general manager of Beiqi Foton Cummins Engine Co., Ltd. (as shown on the left) told the “Automotive News China,” "Up to the production stage, the proportion of parts purchased from China will exceed 80%."

However, purchasing from China is not necessarily a purchase from local Chinese companies. According to Wang Ning, quoted in "American Auto News China," Foton Cummins' engine project has attracted its overseas suppliers to invest in factories in China. For example, Lear Corporation, a 3.8-liter diesel engine wiring harness supplier, has established a wire harness joint venture with Beiqi Holding.

Wang Ning did not say when the company would reach full capacity. But said that according to the joint venture plan, two-thirds of the engines will be used in the Foton model, and one-third of the engines will be sold to other domestic OEMs and international companies.

According to the news released by Cummins China, Beijing Foton Cummins Engine Co., Ltd. was formally established on March 26, 2008. Futian and Cummins each hold 50% of the shares in the joint venture, and the engine's annual production capacity is designed to reach 400,000 units. The joint venture plans to start mass production of 3.8-liter and 2.8-liter inline four-cylinder high-pressure direct injection light diesel engines in May and September 2009, respectively, and said that these two diesel engines have "high starting point, high performance, and low emissions." Can meet Euro III, Euro IV and above emission standards, applicable to light trucks, pickup trucks, SUVs, MPV utility vehicles, small construction machinery, off-highway equipment and power systems."

At the Fukuda 2008 Business Conference held in January 2009, the Ouma Intercontinental light truck with Foton Cummins 3.8-liter diesel engine debuted on the market and the car will be officially launched in the second half of 2009. Cummins said the joint venture is its largest light engine production base in China, and these two engines are the key products for Cummins to enter the light commercial vehicle market.
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