Cummins gets $54M to develop fuel efficient vehicles

COLUMBUS, Ind. (WISH) - Engine-maker Cummins was the site of a federal announcement from the Department of Energy on Monday.

The Columbus-based company is receiving nearly $54 million to develop more fuel efficient passenger cars and heavy duty vehicles.

"The American automobile and truck industry has been a backbone of American industry and we need to continue to have it as a major foundation in America,” said U.S. Secretary of Energy Steven Chu. “Revitalizing this industry requires change and requires innovation and Cummins represents the best of all that."

The money comes from the $787 billion stimulus package. Indiana is getting 50% of the government grant money. Navistar in Fort Wayne is in line for more than $37 million.

"The collaborative relationship between Cummins and the DOE over the past 20 years can be seen as a mile in goals. Our partnership has allowed us to bring evolutionary and breakthrough clean diesel and lower cost that neither of us could have done alone,” said Tom Linebarger, President and CEO of Cummins Inc.

Its good news for Cummins which saw over 600 workers lose their jobs last May. By October, about 270 workers were called back to help build engines for the 2010 Dodge Ram trucks.

This grant money will create about 160 jobs at Cummins and 200 at Navistar.

"That's almost 400 Hoosier families that will be earning a paycheck, putting food on the table, paying the mortgage, saving for college and retirement, helping to turn this economy around,” said Senator Evan Bayh, (D) Indiana.

In total, nine projects are receiving cash with the expectations to create jobs.

The White House said the $187 million in grant money is being given out mainly to companies based in economically hard hit Michigan and Indiana.