Cummins to buy out Westport’s share of JV

07 February 2022

Cummins Inc. and Westport Fuel Systems Inc. have agreed to a share purchase agreement for the sale of Westport’s stake in the Cummins Westport joint venture, with Cummins to operate the business as the sole owner.

Cummins Westport gas engine Cummins and Westport have dissolved their decades-old joint venture that fostered the development and sale of natural gas engines such as the ISXN 12.

Cummins and Westport established the 50-50 joint venture in 2001. Over the years, the company has developed and sold more than 100,000 5.9 to 12 L natural gas engines, mainly for truck and buses. The engines were manufactured by Cummins and incorporated Westport’s HPDI spark-ignited fuel system technology. There was more than 80% parts commonality with Cummins’ diesel platforms and parts, service and warranty coverage was provided by the Cummins sales and service network.

The joint venture agreement between the two companies expired at the end of 2021. As part of the purchase agreement, Cummins also will buy Westport’s interest in the JV’s intellectual property, developed by the JV in support of the JV’s spark ignited engines, with proceeds to Westport of $20 million.

Cummins and Westport have also agreed to conduct an initial technical assessment of Westport’s H2 HPDI hydrogen high pressure direct injection system for potential use on CMI’s hydrogen applications.

For a number of years, Cummins Westport’s ISX12N engine was the highest rated gaseous fueled engine available at 400 hp, but late last year, Cummins unveiled a new 15 L gas engine that will deliver ratings up to 500 hp, using its own fuel system technology.

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