80% of Futian Cummins Diesel Engine Parts will be taken from China

After Beijing Futian Cummins Engine Co., Ltd. began production of its diesel engine, the proportion of parts purchased from China will exceed 80%.

The Beijing Foton Cummins Engine will begin mass production of its first engine product, the 3.8-liter clean diesel engine, from May. The company plans to start producing 2.8 liters of clean diesel engines by the end of this year.

“The two engines were designed based on localized procurement to reduce costs and shorten the supply chain,” Wang Ning, general manager of Beijing Foton Cummins Engine Co., Ltd., told reporters.

Wang Ning said that by the start of production, parts and components purchased from China will account for more than 80% of the amount.

He said that the project of Futian Cummins Clean Energy has also attracted its overseas suppliers to invest and build factories in China.

For example, the 3.8-liter engine wiring harness supplier Lear Corporation has already established a wire harness joint venture with Beiqi Holding Corporation.

Beijing Foton Cummins was established in March 2008. The company has a designed capacity of 400,000 engines.

Wang Ning did not say when the company would reach full capacity. He said, "Product quality and after-sales service are what we value most at the beginning stage."

According to the information released by Foton Cummins, these engines will be used in light commercial vehicles, pickup trucks, utility vehicles and SUVs. The 3.8-liter clean diesel engine will be the first to be used in the Fukuda's Ouma light commercial vehicle.

According to Wang Ning, 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.