Cummins and Rush Enterprises signed a Letter of Intent for Cummins to acquire a 50% equity interest in Momentum Fuel Technologies from Rush Enterprises.
The joint venture will produce Cummins-branded natural gas fuel delivery systems for the commercial vehicle market in North America, combining the strengths of Momentum Fuel Technologies’ compressed natural gas (CNG) fuel delivery systems, Cummins’ powertrain expertise, and the engineering and support infrastructure of both companies.
“This collaboration shows Cummins’ continued commitment to natural gas powertrains,” Srikanth Padmanabhan, president of the engine business at Cummins, said. “This partnership will improve customers’ service for both CNG and RNG through an improved support network. We are thrilled to expand our network of clean and reliable power solutions.”
The joint venture will offer aftermarket support through Rush Truck Centers dealerships and Cummins distributors, which will be able to service both the engine and the fuel delivery system. The partnership will benefit customers by providing them with access to an extensive CNG vehicle parts and service network. Both Cummins’ and Rush Enterprises’ respective networks together represent over 250 locations in the U.S. and Canada and will be equipped with certified technicians.
“The immediate environmental benefits of CNG and RNG, combined with upcoming regulatory requirements, will drive growth in natural gas vehicles for the foreseeable future,” W.M. “Rusty” Rush, chairman, CEO, and president of Rush Enterprises, said. “This partnership will enable Rush Enterprises to continue to provide unparalleled support to our customers through our mutual, wide-ranging portfolio of Cummins’ and RushCare aftermarket solutions and keep trucks up and running across the country.”
The proposed transaction is expected to close later this year, subject to completion of customary pre-closing activities and entering into mutually agreeable transaction documentation.
