Cummins Signs LOI to Acquire 50% Equity Interest in Rush Enterprises’ Momentum Fuel Technologies
Cummins Inc. has signed a letter of intent to acquire a 50 percent equity interest in Momentum Fuel Technologies from Rush Enterprises.
The transaction, expected to close later this year subject to the completion of customer pre-closing activities calls for a joint venture between Rush and Cummins to produce Cummins-branded natural natural gas fuel delivery systems for the commercial vehicle market in North America. It will combine the strengths of Momentum Fuel Technologies' compressed natural gas fuel delivery systems, Cummins' powertrain expertise and the engineering and support infrastructures of both companies.
“This collaboration shows Cummins’ continued commitment to natural gas powertrains,” said Srikanth Padmanabhan, president of the engine business at Cummins. “This partnership will improve customers service for both CNG and RNG through an improved support network. We are thrilled to expand our network of clean and reliable power solutions.”
“The immediate environmental benefits of CNG and RNG, combined with upcoming regulatory requirements, will drive growth in natural gas vehicles for the foreseeable future,” said W.M. “Rusty” Rush, chairman, CEO and president of Rush Enterprises. “This partnership will enable Rush Enterprises to continue to provide unparalleled support to our customers through our mutual, wide-ranging portfolio of Cummins’ and RushCare aftermarket solutions and keep trucks up and running across the country.”
The joint venture will offer aftermarket support through Rush Truck Centers dealerships and Cummins distributors which will be able to service both the engine and the fuel delivery system. The partnership between Cummins and Rush Enterprises will benefit customers by providing them with access to an extensive CNG vehicle parts and service network; both Cummins and Rush Enterprises’ respective networks, which together represent more than 250 locations in the U.S. and Canada, will be equipped with certified technicians and access to a comprehensive CNH vehicle parts inventory.
Rush owns Rush Truck Centers, a network of commercial vehicle dealerships with more than 100 dealership locations in 22 states, representing truck and bus manufacturers such as Peterbilt, International, Hino, Isuzu, Ford, FUSO, IC Bus and Bluebird. Rush also provides CNG fuel systems, telematics products and other vehicle technologies. Momentum Fuel Technologies, based in the Dallas-Fort Worth Metroplex, is a complete CNG fuel system solution for Class 6-8 vehicles.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.