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Cummins Aiming To Purchase Volkswagen's Large Engines Division [Rumor]

Cummins

Cummins has put in an offer for Volkswagen’s large engines division, according to inside sources.

Volkswagen has gotten too big. Or at least, that’s what their executive board has determined. To shrink down its enormous portfolio of businesses and to focus more on its core mobility products and services, VW is looking to offload MAN Energy Solutions, an industrial manufacturer of large diesel engines.

How large? Think power generation and cargo ships.

A new report from Reuters now says that MAN Energy might get sold to American diesel manufacturer Cummins. An “indicative offer” was made for VW’s big engine unit, according to anonymous sources familiar with the deal, however, Cummins and Volkswagen have thus far refused to offer comment.

Cummins would be a good fit for MAN as they too make large diesel engines, although more often for big rigs and large trucks. Cummins is perhaps best known for their partnership with Fiat Chrysler where they provide the large 6.7-L turbodiesel for the Ram Heavy Duty. In the Ram 3500, the 6.7-L makes 400 horsepower and a whopping 1,000 lb-ft of torque.

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VW announced their intent to sell MAN last May as part of their restructuring efforts. The German conglomerate currently has 12 brands making cars, buses, motorcycles, e-bikes, and commercial vehicles.

Cummins
via Universal Technical Institute

Sources say that Cummins and VW have held talks in the past, however, Volkswagen has also approached other companies regarding a sale as well, including one Asian manufacturer. Mitsubishi Heavy Industries has also been mentioned as a possible buyer.

"Volkswagen originally wanted to strike a sweetheart deal with Cummins," said the source, but they’re now seeking alternate buyers. This is likely to ensure VW receives the best possible sale price for MAN, which is expected to sell for $3.4 billion (3 billion Euros).

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