Good, then the Big business can offset the loss in MD..

Industry News
Fiat Mulling Iveco Engine For Dodge Ram?
November 4, 2009

Almost since it began supplying diesel engines for Dodge’s Ram pickup truck in the late 1980s, there have been near-constant rumors and reports that Cummins Inc. was about to lose the business. Through the years however, the Columbus, Ind., engine manufacturer managed to maintain its position and earn a sort of cult following among pickup truck enthusiasts and in the process, sell an average of more than 100,000 engines a year to Dodge.

With the change in Dodge’s corporate status, once again the reports are beginning to circulate that Cummins is in danger of losing the Dodge business. According to a report in the most recent issue of Stark’s Truck & Off-Highway Ledger, a business publication covering the design, manufacture and sales of light, medium and heavy-duty trucks, truck trailers, mobile farm equipment and mobile construction machinery, Fiat S.p.A., which is in control of Dodge parent Chrysler Group LLC, may discontinue sourcing engines from Cummins and is considering replacing the Cummins Turbo Diesel engine with an Iveco engine, built by a Fiat subsidiary.

The change could come as soon as the 2011 model year, according to the Stark’s report, which is attributed to a company source. Stark’s said its source indicated that Chrysler engineers are reviewing Iveco engine specifications, especially as it pertains to weight and emissions issues. A decision is expected by the end of the year, the Ledger report said.

Adding additional spice to the report is the fact that for nearly eight years, Fiat, through its Iveco and New Holland subsidiaries, was part of an engine-related joint venture with Cummins, the European Engine Alliance (EEA), As part of that alliance, companies cooperated in the development of a range of engines, including a 6.7 L diesel similar to the engine used in the Ram. The alliance ended in 2008, in part because of a strategy by Fiat to have its own Fiat Powertrain Technologies (FPT) subsidiary be the primary engine supplier to Fiat companies.

For its part, Cummins expressed confidence that it would survive this challenge as it has all the others. “Cummins and Chrysler have a great partnership that's more than 20 years old, and we expect the partnership to remain strong,” said Cummins in a statement provided to Diesel Progress. Cummins added that the Ram Tubro Diesel engine is “the most proven, with three years’ experience at the 2010 emission levels.”

“The Dodge Ram heavy-duty truck and Cummins Turbo Diesel have great loyalty with our mutual customers, and Dodge sells a higher percentage of diesel heavy-duty pickup trucks than competitive brands,” the Cummins statement concluded. “Cummins will continue to work to earn the Dodge Ram business and to create loyalty for the Cummins Turbo Diesel in the Dodge Ram trucks.”