Cummins, Mercury Marine will transition from CMD joint venture
Company News Friday, December 2, 2011: Cummins Inc.
CHARLESTON, S.C. – Cummins and Mercury Marine will transition from their Cummins MerCruiser Diesel Marine (CMD) joint venture to a strategic supply arrangement between the two companies to more effectively and efficiently serve customers in the global diesel marine market. All business activities will move from CMD to the parent companies, with completion of the transition anticipated by mid-2012. CMD will conduct business as usual through the transition.
Growth in the marine market is strategically important to Mercury Marine and Cummins. Cummins and Mercury Marine will each utilize their respective parent company resources to develop, manufacture, sell, distribute and service diesel engines, drives, pods and related parts, accessories and services.
This announcement follows the decision in October that CMD’s High Speed Diesel line will shift to Mercury Marine. Mercury Marine will integrate CMD’s High Speed Diesel range into its product portfolio and will sell, service and support these products through its global sales and distribution network. With this decision regarding the joint venture, Mercury Marine will also offer its drives, riggings, engine control systems and propellers through these same distribution channels.
Cummins will continue to use Mercury Marine drives and control systems in conjunction with its extensive offering of mid-range and heavy-duty marine engines. This move will leverage Cummins' strong global distribution footprint and create additional synergy with other Cummins recreational marine products, including marine generator sets offered under the Cummins Onan brand.
Cummins and Mercury established the CMD joint venture in 2002 to supply integrated diesel propulsion systems to the worldwide recreational and commercial marine markets. Financial terms of the transaction were not disclosed.
Based in Charleston, South Carolina (USA), Cummins MerCruiser Diesel is responsible for designing, manufacturing and providing reliable after-sales support worldwide for diesel marine propulsion products. It offers a broad range of power, with available ratings from 40-715 hp for recreational applications and 150-715 hp for commercial use. Cummins MerCruiser Diesel is a joint venture between Cummins Inc. and Mercury Marine and can be found on the internet at www.cmdmarine.com.
Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins employs approximately 40,000 people worldwide and serves customers in approximately 190 countries and territories through a network of more than 600 company-owned and independent distributor locations and approximately 6,000 dealer locations. Cummins earned $1.0 billion on sales of $13.2 billion in 2010. Press releases can be found on the Web at www.cummins.com.
About Mercury Marine
Headquartered in Fond du Lac, Wis., Mercury Marine is the world’s leading manufacturer of recreational marine propulsion engines. A $2 billion division of Brunswick Corporation (NYSE: BC), Mercury provides engines, boats, services and parts for recreational, commercial and government marine applications. Mercury’s industry-leading brand portfolio includes Mercury and Mariner outboard engines; Mercury MerCruiser sterndrive and inboard packages; MotorGuide trolling motors; Mercury propellers; Mercury inflatable boats; Mercury SmartCraft electronics; Attwood marine parts; Land ‘N Sea marine parts distribution; and Mercury and Quicksilver parts and oils. More information is available at mercurymarine.com.