Engine maker Cummins Inc., and Navistar International Corp. have agreed to end talks on a joint venture to develop and make heavy-duty engines for the Chicago-based truckmaker.
Cummins told Indiana legislators last month that Cummins was negotiating with the truckmaker to develop a heavy-duty engine designed to meet 2001 U.S. diesel emission standards.
Cummins asked the state to guarantee a $35-million loan for the engine project because the company couldn't borrow on its own.
“We were unable to reach a mutually acceptable agreement,” said Cummins spokeswoman Dorothy Brown Smith.
Cummins CEO Tim Solso told Indiana legislators two weeks ago that the company spent an estimated $500 million on the engine project and would need to invest another $300 million to $500 million.
“It's a changing industry, and people are talking all the time,” said Roy Wiley, a spokesman for Navistar, of the talks with Cummins.
