IBJNews

Cummins plans to add 500 jobs for Nissan engine

Back to TopCommentsE-mailPrintBookmark and Share

Nissan Motor Co., which has struggled to win over U.S. buyers of large pickups, said it will offer a diesel engine in its redesigned Titan truck, a first for a Japan-based automaker.

The 5-liter, V-8 turbo diesel will be supplied by Cummins Inc., Yokohama, Japan-based Nissan said in a prepared statement Tuesday.

Cummins said the engine will be built in Indiana at the company's historic plant in downtown Columbus, creating up to 500 jobs over the next several years. About 300 people currently work on the V-8 program.

Details of the next Mississippi-built Titan, which hasn’t been fully revamped since its 2003 introduction, aren’t being disclosed at this time, the company said.

“Truck owners told us there’s a demand for the performance and torque of a diesel in a capable truck that doesn’t require the jump up to a heavy-duty commercial pickup,” Fred Diaz, vice president for North American Nissan sales and marketing, said in the statement. “There is no question that the new Titan will turn heads.”

Nissan missed expectations a decade ago with Japan’s first pickup that appeared to match the size and power of the trucks that are a cornerstone of U.S. sales for General Motors Co., Ford Motor Co. and Chrysler Group LLC. Nissan never met an initial target of selling 100,000 Titans a year, and delivered just 10,020 this year through July, a sixth the volume of Toyota Motor Corp.’s Tundra, and a fraction of the sales of Ford’s F-Series, GM’s Silverado and Chrysler’s Ram pickups.

U.S. full-size pickup sales jumped 23 percent this year through July, according to Autodata Corp., as an improving economy encourages buyers to replace their aging trucks. Large pickups account for a majority of earnings for U.S. automakers, according to Morgan Stanley.

Owners of large pickups are among the most loyal to GM, Ford and Chrysler. Nissan hired Diaz, 47, earlier this year after the executive headed Auburn Hills, Mich.-based Chrysler’s Ram brand and Mexican unit.

Diesel engines appeal to drivers who need enhanced power and towing capability, and are a common option for GM, Ford and Ram trucks.

Toyota City, Japan-based Toyota, which is readying a revamped Tundra, has no plans to add a diesel powertrain at this time, said Bill Fay, the company’s group vice president for U.S. sales, in an interview in San Diego.

Nissan didn’t provide investment figures.

Cummins already supplies a 6.7-liter turbo diesel engine for Chrysler’s Ram Heavy Duty truck but is looking to expand its product line for lighter-duty trucks. The manufacturer is already North America’s largest supplier of heavy-duty truck engines, controlling about 40 percent of the market.

However, demand has fallen off for heavy-duty engines recently due to a worldwide decline in the mining, oil and gas, and power-generation markets.

Cummins shares rose 81 cents, to $124.01 each, in afternoon trading.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. These liberals are out of control. They want to drive our economy into the ground and double and triple our electric bills. Sierra Club, stay out of Indy!

  2. These activist liberal judges have gotten out of control. Thankfully we have a sensible supreme court that overturns their absurd rulings!

  3. Maybe they shouldn't be throwing money at the IRL or whatever they call it now. Probably should save that money for actual operations.

  4. For you central Indiana folks that don't know what a good pizza is, Aurelio's will take care of that. There are some good pizza places in central Indiana but nothing like this!!!

  5. I am troubled with this whole string of comments as I am not sure anyone pointed out that many of the "high paying" positions have been eliminated identified by asterisks as of fiscal year 2012. That indicates to me that the hospitals are making responsible yet difficult decisions and eliminating heavy paying positions. To make this more problematic, we have created a society of "entitlement" where individuals believe they should receive free services at no cost to them. I have yet to get a house repair done at no cost nor have I taken my car that is out of warranty for repair for free repair expecting the government to pay for it even though it is the second largest investment one makes in their life besides purchasing a home. Yet, we continue to hear verbal and aggressive abuse from the consumer who expects free services and have to reward them as a result of HCAHPS surveys which we have no influence over as it is 3rd party required by CMS. Peel the onion and get to the root of the problem...you will find that society has created the problem and our current political landscape and not the people who were fortunate to lead healthcare in the right direction before becoming distorted. As a side note, I had a friend sit in an ED in Canada for nearly two days prior to being evaluated and then finally...3 months later got a CT of the head. You pay for what you get...

ADVERTISEMENT