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Cummins' New ISV5.0 Engine

Zacks Equity Research

Cummins Inc. (CMI) announced the launch of a new a 5-liter V8 diesel engine, ISV5.0, which will be produced from the fourth quarter of 2014. This engine will be installed in power pickup-and-delivery vehicles, other light- and medium-duty trucks, school buses and motorhomes. The new engine will offer enhanced fuel efficiency and performance and help reduce emission.

Cummins ISV5.0 engine is armed with industry leading technology and offers better performance at a low total cost of ownership to customers in North America.  The ISV5.0 will be produced in the Columbus Engine Plant, along with the 5.0L V8 Turbo Diesel for pickup trucks.

Cummins ISV5.0 engine comes with a compacted graphite iron (CGI) cylinder block, high-strength aluminum alloy heads, forged steel crankshaft and composite valve covers. Thus, it offers high durability along with lightweight packaging. With these features and the dual overhead camshafts, Cummins ISV5.0 engine helps minimize roughness, noise and vibration. In addition, the ISV5.0 engine is small enough to conveniently replace V8 or V10 gasoline engines.

The new ISV5.0 engine of Cummins will be available to customers in the U.S and Canada. It will meet the U.S. Environmental Protection Agency’s (:EPA) emission requirements related to NOx and PM. Cummins also expects that the engine will satisfy the greenhouse gas standards till 2016, and 2015 Air Resources Board standards, including on-board diagnostics.

In September, Cummins announced the introduction of the G Series platform, a global heavy-duty engine platform. It features an in-line six cylinder engine and will be available in 10.5 and 11.8 liter displacements. The G Series platform is expected to meet the global market demands and emission standards both on- and off-highway.

Cummins currently has a Zacks Rank #3 (Hold). Other stocks that are performing well in the industry include TRW Automotive Holdings Corp. (TRW), Allison Transmission Holdings, Inc. (ALSN) and Denso Corp. (DNZOY). All these are Zacks Rank #1 (Strong Buy) stocks.

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