In a pivotal move supporting their ambitious emissions reduction agenda, Cummins Inc. has strategically acquired two manufacturing plants from Faurecia for $153 million. As Cummins acquires Faurecia plants, the deal signifies a major leap forward in Cummins’ journey towards achieving its net-zero emissions goal by 2050 and underlines its commitment to fostering clean-tech jobs. More than just a business transaction, this acquisition opens up an array of exciting possibilities for both companies and the larger manufacturing sector.


Cummins Acquires Faurecia Plants to Fortify Emissions Reduction Strategy


Cummins Inc. supports their emissions reduction agenda by acquiring two Faurecia plants for $153 million.

Columbus, Ind., and Roermond, NetherlandsCummins Inc., a global powerhouse in the manufacturing sector, has made a strategic move in its emissions reduction plan by acquiring two Faurecia plants for $153 million. This move brings about substantial progress in Cummins’ net-zero emissions objective while also creating more clean tech jobs.

Key Details of the Cummins-Faurecia Deal

Faurecia Equipment

Cummins Inc. strengthens its emissions reduction plan with a strategic $153 million acquisition.

“The acquisition involves Faurecia’s commercial vehicle exhaust after-treatment business, equipping Cummins with enhanced access to crucial supplies. This deal builds on a decade-long relationship between the two manufacturing giants. Faurecia is optimistic that the sale will secure the long-term sustainability of the plants and their workforce. Covering about 1,100 employees, Cummins has every intention to retain all personnel, according to Cummins spokesperson Jon Mills.”

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Impact on Emissions Reduction Strategy

The acquisition provides a much-needed boost to Cummins’ commitment to a greener future. Last year, the company shared its vision and strategy to reach net-zero emissions by 2050. Mills emphasized that the acquisition would bolster Cummins’ technical capabilities, bring the company closer to its key suppliers and customers, and expand its mixer portfolio.

The Role of Government Legislation

The company’s green ambitions received a major boost from the Bipartisan Infrastructure Law and Inflation Reduction Act. Encouraged by these legislative moves, Cummins announced plans to invest $1 billion in facilities across Indiana, New York, and North Carolina.

Cummins Acquires Faurecia Plants for $153M

Post-acquisition, Faurecia’s exposure to internal combustion engine will reduce to 10% by 2025.


Faurecia’s Take on the Deal

Faurecia’s chief executive, Patrick Koller, highlighted the importance of the deal in reducing the company’s exposure to the internal combustion engine. He said that with this transaction, “the Group’s exposure to internal combustion engine in 2025 would reduce towards 10 percent.”

Faurecia’s Continuing Operations
Faurecia hero logo

Faurecia’s CEO underscores the deal’s role in reducing exposure to the internal combustion engine.

Despite the sale, Faurecia plans to continue its after-treatment business globally. Cary Chenanda, vice president of emission solutions at Cummins, reassured that the company will maintain ongoing relationships with Faurecia in Brazil, China, India, and South Africa.

Anticipated Closing of the Deal

The transaction is expected to close by the end of this year, further reinforcing Cummins’ global presence and positioning them closer to their emissions reduction goal.


Implications for Clean Tech Manufacturing

The Cummins-Faurecia deal illustrates the growing trend of acquisitions focused on supporting green technology investments. As Cummins steps up its efforts towards its net-zero emissions target, it’s clear that such deals not only help companies meet their eco-friendly goals but also contribute to local economies through clean tech job creation. This deal sets a precedent for other companies, showing them the benefits and necessity of pivoting towards sustainable manufacturing strategies.
As the world continues to battle against climate change, moves like the Cummins-Faurecia deal may just be the tip of the iceberg in a broader shift towards more sustainable, low-emission industries.


7 Outcomes from Cummins’ Acquisition of Faurecia’s Manufacturing Plants:

  1. Boost to Cummins’ Emissions Reduction Strategy: The acquisition provides Cummins with enhanced access to key supplies and personnel, directly benefiting their emissions reduction efforts.
  2. Job Security for Employees: With plans to retain all 1,100 employees from the acquired plants, the deal guarantees job security and continuity for the workforce.
  3. Enhanced Global Presence: The acquisition extends Cummins’ global footprint, particularly in Europe, offering a strategic advantage in the competitive manufacturing industry.
  4. Supports Faurecia’s Environmental Goals: The deal aligns with Faurecia’s intentions to reduce its exposure to the internal combustion engine, supporting their own environmental objectives.
  5. Stimulus for Local Economies: The commitment to invest in facilities across Indiana, New York, and North Carolina is expected to spur economic growth and job creation in these areas.
  6. Strengthened Industry Partnerships: The deal reinforces the decade-long collaboration between Cummins and Faurecia, fostering a productive partnership that benefits both parties.
  7. Sets a Precedent for Sustainable Manufacturing: This acquisition emphasizes the importance of adopting sustainable practices within the manufacturing sector, potentially influencing other companies to follow suit.


Explore External Resources and Insights:

  • Cummins Inc.: Learn more about their mission, history, and the areas they cover.
  • Faurecia: Find information on their services, history, and commitment to innovation.
  • Environmental Protection Agency: Understand the regulations and laws in the specific field of emissions and air quality.


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