Cummins, Mercury Marine Dissolving Joint Venture

Dec. 5, 2011
Partners will maintain separate initiatives in marine diesel systems

Cummins Inc. and Mercury Marine plan to dissolve their joint venture next year and will use their individual resources to supply the marine engine market. Cummins MerCruiser Diesel Marine (CMD) was established in 2002 to supply integrated diesel propulsion systems from 40-715 hp for recreational boats and 150-715 hp for commercial vessels.

Neither company offered an explanation for ending the venture. The soon-to-be-former partners explained they plan to “transition out of the joint venture into a strategic supply arrangement in which each company will develop, manufacture, sell, distribute and service diesel engines, drives, pods and related parts, accessories and services.”

Cummins Inc designs and builds engines, fuel systems, controls, air handling, filtration, emission solutions, and electrical power generation systems. Mercury Marine manufactures propulsion engines for the recreational marine sector, as well as Brunswick Corp. Mercury engines and boats, Mercury and Mariner outboard engines, Mercury MerCruiser stern-drive and inboard packages, and numerous other product lines.

In October, the partners announced that CMD’s line of high-speed diesel engines would be reassigned to Mercury Marine, which will offer it along with its other products. With the dissolution of the joint venture, Mercury Marine also will offer CMD’s drives, riggings, engine control systems and propellers.