Cummins Inc. said today it will eliminate 500 jobs this year because of the slumping North American heavy-duty truck market, a market the company says it remains committed to serving.

Cummins said it would leverage the strength of its ISX and Signature engine family and build off existing product platforms to meet its customers’ needs. The company said that it would take a special pre-tax charge in the second quarter of $100 million to $120 million relating to the termination of the development of a new engine platform as well as personnel reductions.

Tim Solso, Cummins' chairman & CEO, said the combination of leveraging its long-term supply agreements to take out costs, aggressive cost-reduction actions, the decision to stop an engine development program and the strength of the current product line to meet both customer requirements and new emissions standards will give Cummins the ability to achieve a “reasonable” profit in the truck market.