Westport Fuel Systems (Joint Venture Evolution)
2015
Why
Cummins initially formed a joint venture with Westport to develop natural gas engines, eventually acquiring full control of the heavy-duty natural gas technology to dominate the vocational and transit bus segments requiring low-emission alternatives to diesel.
Impact
The strategic evolution allowed Cummins to launch the B6.7 and L9 natural gas engines, capturing 80% of the North American transit bus market and generating $1.5 billion in annual revenue from municipal fleets requiring zero-emission zone compliance without the range anxiety of battery electric.
Outcome
Established Cummins as the undisputed leader in the heavy-duty natural gas market, providing a bridge technology for fleets transitioning to zero-emission powertrains while maintaining the high durability and uptime expected from the Cummins brand.