Diesel Progress North American

GLOBAL BUSINESS NOTES dp
Cummins And Volkswagen In Marine
Engine Deal … New Cat Excavator Plant,
Design Center … Husqvarna Expanding …

Cummins MerCruiser Diesel (CMD) and Volkswagen have announced an alliance to co-develop marine engines below 5.0 L that will be marketed, distributed and serviced under the CMD brand. Volkswagen will manufacture the new engine line at its plant in Salzgitter, Germany. Additionally, effective Jan. 1, 2011, all current Volkswagen marine engines, which include engines up to 350 hp, will be sold exclusively by CMD and marketed under the CMD brand.

Also beginning Jan. 1, 2011, the CMD distribution network will assume responsibility for service and administration of warranty claims for engines previously sold under the Volkswagen Marine brand. For engines above 5.0 L, CMD will continue to marinize Cummins base engines in the Charleston, S.C., and Darlington, U.K., facilities.

Caterpillar Inc. has selected Victoria, Texas, as the location for a new hydraulic excavator manufacturing facility. Groundbreaking for the 600,000 sq.ft. manufacturing operation was scheduled for September. The facility is expected to begin production by mid-2012.

In a unique turnaround, Cat said the new facility will manufacture several excavator models now produced in Akashi, Japan, and exported to the United States, as well as two models now made in Aurora, Ill.

Once operational, Cat said the new
plant will triple its capacity of hydraulic
excavators in the United States. The
expansion will allow the facility in Japan
to better serve the demand for excava-
tors in Asia, the company said. Caterpil-
lar has also recently announced plans
to quadruple excavator capacity at its
manufacturing facility in Xuzhou, China.
This is Cat’s second new plant in Texas
following the opening of an engine plant
in Sequin, Texas, earlier this year.