Mercury and Cummins to dissolve CMD Joint Venture
Cummins MerCruiser Diesel Marine, started in 2002, will wind down by mid-2012Cummins and Mercury Marine issued a joint statement saying that they plan to wind down their Cummins MerCruiser Diesel Marine (CMD) joint venture by the middle of 2012. The statement said the companies will move towards a "strategic supply arrangement to more effectively and efficiently serve customers in the global diesel marine market.” CMD was started in 2002.
The companies announced in October that service, sales and support for CMD’s High Speed Diesel line would shift to Mercury Marine. The cessation of the joint venture means that each company will now be responsible for developing, manufacturing and selling their own diesel engines, drives, and pods as well as parts and accessories.
Cummins said it will continue to use Mercury Marine drives and control systems with its mid-range and heavy-duty marine engines. “This move will leverage Cummins' strong global distribution footprint and create additional synergy with other Cummins recreational marine products, including marine generator sets offered under the Cummins Onan brand,” noted the statement.
Mercury Marine said that the termination of the joint venture does not mean it was not successful, but just that the market had changed. Financial terms of the transaction and the number of jobs lost at CMD's facility in South Carolina were not disclosed.
A spokesman for Mercury Marine, David Meehan, said customers in Australia would not be affected by the disolution of the joint venture: "For customers here in Australia, it will mean little on either side," said Mr Meehan. "Mercury will take over all service and parts for all high-speed diesels and for Cummins customers, nothing will change."
"Since last year when we took on VW-based engines, we have been continuing to 'Mercury-ise' them by fitting SmartCraft and DTS (digital throttle and shift) and the end result will be some fantastic engines for the consumer in the future," Mr Mehhan added.
"The bottom line for existing customers is that they will see no difference at dealer level for their service and parts. In fact, parts availability will get better."
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