Cummins and Ram extend partnership, launch new diesel engine

Published 01/07/2025, 01:09 PM
CMI
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COLUMBUS, Ind. - Cummins Inc . (NYSE: NYSE:CMI), a prominent player in the machinery industry with a market capitalization of $49.6 billion, and Ram have announced the release of the new 2025 6.7-liter Turbo Diesel Pickup engine system, marking the latest advancement in their diesel engine offerings for Ram Heavy Duty vehicles. The unveiling of this new engine coincides with the extension of the Cummins-Stellantis partnership, which will now continue through 2030. The announcement comes as Cummins demonstrates strong market performance, with its stock up approximately 54% over the past year.According to InvestingPro analysis, Cummins shows robust financial health with multiple positive indicators. Investors can access detailed insights and 12 additional ProTips through the InvestingPro platform.

The new 6.7-liter Turbo Diesel engine system is designed to deliver improved power, efficiency, serviceability, and driveability. According to Jane Beaman, Vice President – Global On-Highway and Pickup at Cummins, the 2025 Ram Heavy Duty lineup is set to be the most desirable yet. The engine's High-Output ratings reach 430 horsepower and 1,075 lb.-ft. of torque for Pickups, and 360 horsepower and 800 lb.-ft. of torque for Chassis Cab trucks.

In collaboration with Ram and their powertrain providers, the engine has been optimized with a new 8-speed transmission, aiming to provide a balance of power, responsiveness, and driveability. Jennifer Rager, General Manager – Pickup Business at Cummins, expressed excitement about continuing the partnership with Ram and delivering what they consider the best diesel Pickup engine in the industry.

The 2025 Ram Heavy Duty trucks powered by the new Cummins engine have shown noticeable gains in acceleration and power, which translates to stronger overall performance and towing capability. The Ram 2500, in particular, has seen improvements in towing speeds and responsiveness, offering smoother transient responses and enhanced confidence under towing conditions.

Cummins has also focused on serviceability, with software updates now executable from inside the truck and maintenance components like the oil and dual fuel filters accessible from the top side of the engine. Additionally, the engine system features improved cold-start management with advanced glow plug technology, ensuring reliable operation in extreme weather conditions.

The partnership between Cummins and Ram dates back to 1989, with a shared commitment to innovation, power, and durability. The 6.7 Turbo Diesel has evolved significantly since its first generation, reflecting the companies' dedication to progress in the automotive industry.

This news is based on a press release statement from Cummins Inc. and does not contain any opinions or recommendations. For more information about the new engine, interested parties are directed to visit Cummins' official website.Looking ahead, InvestingPro data reveals that 4 analysts have revised their earnings upwards for the upcoming period, with the company expected to maintain profitability. Cummins has demonstrated consistent shareholder value, maintaining dividend payments for 54 consecutive years. For comprehensive analysis including Fair Value estimates and detailed financial metrics, investors can access the full Pro Research Report, available exclusively on InvestingPro.

In other recent news, Cummins Inc. has seen a flurry of activity in the market. JPMorgan upgraded Cummins from Underweight to Neutral, raising the price target to $420. This followed a reassessment of the company's potential sales growth, particularly in the Distribution and Power Systems segments. Meanwhile, Evercore ISI upgraded Cummins' stock rating from In Line to Outperform, citing confidence in the company's upcoming launch of a 2027 EPA-compliant engine.

Baird also adjusted its price target for Cummins to $372, in response to the company's Q3 2024 results, which demonstrated steady sales of $8.5 billion and an increase in EBITDA to $1.4 billion. These results marked a margin rise from 14.6% to 16.4%. In other recent developments, Cummins launched full production of the X15N natural gas engine and inaugurated an electrolyzer manufacturing plant in Spain.

Analysts from JPMorgan, Evercore ISI, and Baird have all recently adjusted their outlooks on Cummins, reflecting a broader market reassessment of the company's growth potential. These adjustments come in the wake of strong financial performance and strategic moves by Cummins, including the launch of new products and the anticipation of early EPA compliance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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