ool news from Cummins. (press release here)
(For those of you that don’t know, in my former life I was an engineer at Cummins, Inc. I worked on the electronic controller (ECM) for the mid-range engines.)

They made a big announcement this week that they were partnering with an unnamed auto manufacturer to put a new, high performance diesel engine in SUVs and small pickup trucks. The press release claims that the diesel engine will get up to 30% better fuel economy than the same vehicle with a gas engine.

The problems with diesels in the past were noise and exhaust. They were loud and the exhaust was soot filled and smelly. The problems are all but gone with developments over the past ten years. I worked on the 2002 and 2003 midrange engines (same size that Dodge puts in their pickups) and on those Cummins introduced “pilot” fueling which makes them run almost as quiet as a gas engine. Plus, the EPA has ever-increasing emissions requirements that have helped the exhaust problems of the past. This approach, introducing diesel engines into the auto market, could end up being a more realistic approach to oil conservation than hybrids. Lower cost and less specialized equipment on the vehicle.

The last year or so I was at Cummins, we started hearing rumors of a new engine that had been kept top secret for several years (a big feat at Cummins, they don’t keep secrets very well.) The rumor was it was going to be a V6 engine designed to go in SUVs and the rumor at the time was they were trying to get Dodge to put it in the Durango. And, once they got a customer they would build the engine at the main Cummins plant in Columbus which has sat virtually empty for the past 6 years. The press release from Cummins said they can’t announce the auto manufacturer and they have not decided on a manufacturing location. But, I would not be surprised if they announce Chrysler as the customer and Columbus as the manufacturing location, they already own an empty, 2 billion square foot manufacturing facility there (well not that big but it does take up about 10 city blocks.)

The only reason I can think of for the customer not being Chrysler is that they have their own similar engine they developed a few years ago in Germany. I can’t wait to hear more about this. It can be huge news for my home town, all my friends that still work there and for my mutual fund