Cummins CMI stock broke above its 200 day moving average on June 13, 2023. CMI stock is in a technical weak uptrend.
Cummins Inc is a multinational corporation that designs, manufactures and distributes engines, power generation systems, filtration and emission control systems, and related parts and services. They provide products and services to customers in a variety of industries, including trucking, mining, construction, marine, rail, agriculture, and automotive. Additionally, Cummins also offers technologies designed to improve fuel efficiency, reduce emissions, and increase performance. The company’s headquarters are located in Columbus, Indiana, USA.
Cummins to Acquire Parts of Faurecia’s Commercial Vehicle Exhaust Business in Europe and the United States
On May 23, 2023, Cummins revealed that it had reached a binding agreement with Faurecia to pay EUR142 million for the purchase of two of Faurecia’s facilities for the production of commercial vehicles. The manufacturing facilities are situated in Columbus, Indiana, and Roermond, the Netherlands.
“Cummins and Faurecia have a long partnership history,” said Cary Chenanda, Vice President of Cummins Emission Solutions. “This proposed acquisition would enable both organizations to meet long-term strategic goals and would preserve business operations and employment for talented employees within the two plants and related tech centers, while creating value for customers and suppliers across the entire supply chain. Cummins is committed to meeting or exceeding global emissions regulations now and in the coming years, and I am energized by this unique opportunity to gain experienced technical and manufacturing resources that would carry us far into the future.”
Chenanda continued, “I appreciate Faurecia’s engagement and attentiveness during the due diligence process, and I believe this potential acquisition would be in the sound interest of all parties. We are excited to build relationships with new customers and suppliers. Signing this agreement marks a significant milestone in our partnership with the Roermond and Columbus facilities, but it does not change our relationship in other global locations. We will maintain ongoing relationships with Faurecia in Brazil, China, India and South Africa.”
For more than a decade, Faurecia has been a supplier and partner of Cummins, and the FORVIA Group’s divestment initiatives gave Cummins the chance to guarantee the long-term supply of aftertreatment parts and assemblies. The acquisition expands Cummins’ existing mixer portfolio and adds significant technical and manufacturing resources. Cummins’ Emission Solutions division is well-positioned for long-term success thanks to these resources.
Following the transaction’s completion, Cummins will make the necessary investments to fulfill the contracts with the current suppliers and customers of Faurecia in both facilities. Cummins is committed to upholding these agreements. Until the acquisition is finalized, Cummins, the Columbus South and Roermond plants will all continue to exist as separate legal entities.