Cummins seeks to renegotiate diesel Dodge Ram deal with Chrysler

Earlier this week, court documents revealed that as part of Chrysler's bankruptcy proceedings, Dodge had canceled its contract with Cummins to produce diesel engines for light duty pickups. Late yesterday, however, Columbus, Indiana-based Cummins said that it is attempting to renegotiate the contract with the post-Chapter 11 new Chrysler.

Cummins spokesman Mark Land told the Associated Press that Cummins, which had already designated a production line in Southern Indiana for the light-duty diesel powertrains, is actively renegotiating the deal with Chrysler and its new Fiat parent.

The diesel engine manufacturer also said that it will reopen the idled plant that produces engines for Dodge's heavy duty trucks as soon it receives word that Chrysler plans to resume production of those trucks.