July 01, 2009

Chrysler Cancels Cummins Diesel for Light-Duty Dodge Ram

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DETROIT - Chrysler will cancel its contract with Cummins Inc. for the light-duty diesel engine planned for the Dodge Ram 1500 pickup, according to www.AutoWeek.com.

Chrysler disclosed the termination as part of a group of supplier rejections filed in U.S. Bankruptcy Court. The engine was originally scheduled for delivery in the 2010 model-year.

Cummins had not expected the automaker, which emerged from Chapter 11 last week, to assume the agreement, said Mark Land, a spokesman for the engine maker. "We're OK with it," Land said, adding the contract was signed in 2006. "Obviously a lot's changed in Chrysler's world and the world at large since then."

In January, Chrysler said it was delaying the introduction of the diesel light-duty Ram until at least 2011. Frank Klegon, then Chrysler's executive vice president of product development, cited stricter federal emissions standards and the high cost of diesel fuel in announcing the change, according to Auto Week.

Manufacturing launch of the all-new 2009 Dodge Ram at the Warren (Michigan) Truck Assembly Plant.

Cummins has been talking with Chrysler for months about changes to the program and will continue to do so, Land said.

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