Engine maker Cummins and truck builder Paccar have formed a long-term supply agreement to provide Cummins' heavy-duty ISX, Signature, N14, ISM and ISL engine models for Paccar's Peterbilt and Kenworth truck lines. In a separate agreement, Cummins has also become the main engine supplier to Paccar's European subsidiary, DAF Trucks, for medium-duty engines for the recently introduced DAF LF Series.

“This agreement reflects the industry trend towards closer cooperation between OEMs and engine suppliers to provide enhancements to improve vehicle performance,” said Joe Loughrey, Cummins executive-vp. “The impact of 2002 emission regulations and the benefits to customers of providing a more integrated powertrain are key elements in this alliance.”

Unlike a deal signed with Volvo late last year, Cummins will not be an exclusive engine supplier for Paccar. However, the move is widely viewed as the OEM's first step in reducing the number of engine suppliers it uses.

In the Volvo arrangement, Cummins is the truck maker's sole external engine supplier in North America. Volvo trucks sold in the U. S., Canada and Mexico will be available only with Cummins or Volvo engines, effective with model-year 2002.

Engines for Volvo trucks will range from 275 to 600 hp., with displacements from 7 to 15 liters. Volvo will supply 7- to 12-liter engines. Cummins will supply its ISM, N14, ISX and Signature engine models.