Volkswagen and Cummins MerCruiser Diesel (CMD) announce strategic partnership

Article by Christian A., on August 25, 2010

Volkswagen and Cummins are teaming up to develop a new generation of non-automotive, high-compression engines. These two companies are renowned for the advances made in diesel technology. Volkswagen and Cummins MerCruiser Diesel, the boating division of the Cummins engine group, are partnering to produce future marine products.

Both companies will aim for products that comply with Tier 3 emissions standards in the US, which will take effect in 2012. In Europe, the new diesel standards will go into effect in 2014. Starting from 2011, all Volkswagen-manufactured marine engines will be supplied, marketed, and branded under the Cummins name.

Dr. Werner Neubauer, Volkswagen board member, said that what it contributes to the alliance is its technological know-how in engine production and the high quality standard of Volkswagen products.

CMD, on the other hand, is an expert at marine applications and is recognized for its success in marine engine distribution and service.

This agreement marks the start of an additional field of expertise in an automotive-related area. In effect, it protects the employment at Volkswagen on a sustainable basis. Assembly of the 346hp engines will be done in Salzgitter, Germany.

When Volkswagen Marine is mentioned, it conjures up images of engines built under the highest technological standard. This was shared by Professor Dr. Werner Neubauer, who is part of Volkswagen’s Board of Management for ‘Components.’

The company puts a high value on the marine business as it represents major potential not just for Volkswagen but for its partner CMD as well, Neubauer adds. For this particular partnership, the company brings with it the technical knowledge in the production of engines and the high quality standards inherent in its products.

CMD meanwhile remains to be the best when it comes to marine applications as well as in the distribution and service of marine engines. Neubauer relates that the agreement entered into between the company and CMD is merely the start in what is expected to be a new expertise for the company with regards to automotive-related topics.

This in turn will mean that employment in the company will become not just stable but even sustainable, Neubauer concludes. Meanwhile Dr. Arno Antlitz, a member of Volkswagen’s Board of Management for ‘Controlling and Accounting’, said that the collaboration between the two companies unites the strengths of the two.

Hopefully this will start, in the naval market, an offer program that will give Volkswagen the opportunity to increase engine sales particularly in this segment, Antlitz shares. President of CMD Alex Savelli shares proudly that they are happy with the partnership as it brings the best ideas and abilities from the two companies particularly in the area of marine propulsion systems.

By entering into an alliance with Volkswagen, Savelli adds that CMD will hopefully be able to meet the newly-set strict standards by the marine industry on exhaust legislation even before they actually come to effect.

Savelli anticipates that by working together, it will not only result in products that are more environment-friendly but will also lead to more value in terms of its price, reduced noise & vibrations, reliability, vibrations, weight and size.

Press Release

VW and CMD Announce Strategic Partnership on Engines

Cummins MerCruiser Diesel (CMD), a supplier of marine propulsion solutions, and Volkswagen concluded a partnership today (Thursday) to develop and supply marine engines.

Commitments include the joint development of marine engines that will comply with the future Tier 3 emissions standard. Volkswagen is a leading manufacturer of diesel marine engines with a maximum rating of 258 kW (350 hp) and will set up series production of the new engine generation at its plant in Salzgitter. Furthermore, under the agreement concluded today all Volkswagen marine engines will from 2011 on be exclusively supplied to CMD and marketed under the CMD name.

The Tier 3 emissions standard comes into effect in the United States in 2012, with the corresponding European standards following from 2014 onwards. Tier 3 prescribes significantly lower thresholds for emissions of nitrogen oxides (NOx) and other pollutants and requires the further development of diesel combustion technology.

“The name of Volkswagen Marine stands for engines of the highest technological standard,” Professor Dr. Werner Neubauer, member of the Board of Management of the Volkswagen brand responsible for ‘Components’, said. “The strategic marine business offers significant potential for both partners. We bring to the alliance our technological know-how in engine production and the high quality standard of Volkswagen products. CMD has expert knowledge of marine applications and is well known for its success in marine engine distribution and service,” Neubauer added. “Today’s agreement marks the beginning of a further field of expertise in an automotive-related area and therefore safeguards employment at Volkswagen on a sustainable basis,” Neubauer continued.

“The cooperation between Volkswagen and CMD ideally combines the strengths of both partners,” Dr. Arno Antlitz, member of the Board of Management of the Volkswagen brand responsible for ‘Controlling and Accounting’, said. "It originates an offer program in the naval market with the chance of a clear increase of the sales amounts of our engines in this area", Antlitz further.

“We are delighted with this union. It brings together the best minds and capacities in the field of marine propulsion systems,” Alex Savelli, President of CMD, commented. “We are convinced the relationship with Volkswagen will put us in a position to meet the requirements of the new exhaust legislation for the marine industry well before it comes into effect. 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 price.”

Topics: vw, diesel, partnership

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