Under the terms of the agreement, Cummins supplies inboard diesel engines 15 litres and below, including certain electronic displays and other hardware. Mercury Marine supplies the Mercury 1.7, 2.8, 4.2 and 7.3 litre diesel engines, drive units for diesel stern drive application and their SmartCraft electronic integration hardware.

Together, CMD will provide a power range of from 76 to 580bhp for commercial applications.

A key task of the joint venture company is to merge the respective distributor and dealer networks of Mercury and Cummins Marine to increase dealer density worldwide and create a homogenous network in support of diesel sterndrives and inboards. In North America the Cummins Marine channel has been selected to take the lead in distributing the CMD product line. Mercruiser diesel dealers are being evaluated by the Cummins distributor network and it is anticipated that many will continue to play a role in support of service and repower opportunities.

CMD's view of Europe is that it cannot be a homogenous market and the new company is thus formulating distribution plans on a country by country basis. European distribution decisions are expected to be finalised over the next six to nine months, with the outcome for the UK and Germany due to be announced at the upcoming Dusseldorf Boat Show. CMD's Vice President of Sales and Marketing Worldwide, Gary Dickman, told Maritime Journal that EP Barrus would retain the UK distributorship of the Mercruiser products it already handles. There will be a multi-tier system in some markets where CMD would not be able to supply OEM customers through a distributor at competitive prices.

The London Boat Show saw CMD introduce a new 450bhp rating for the QSM11 electronic engine for commercial applications such as fishing boats, smaller offshore vessels, coastal freighters, patrol boats and others. The in-line six cylinder, 10.8 litre QSM11-450 features as standard a marine electronic and fuel control system which includes an engine control module, electronic engine sensors and diagnostics.

The C-Cruise optional electronics package offers marine cruise control. The medium continuous duty QSM11-450 also meets the stringent US EPA Tier II emissions regulations which come into force in 2004.

MJ Information No: 17813