Historically, Nissan (NASDAQOTH:NSANY) has never really been known for offering a lot of diesel engine-equipped vehicles, but that may be changing.
On Thursday, Nissan announced that it will be putting a 5.0L V8 diesel engine built by Cummins Inc (NYSE:CMI) in the next generation of its Nissan Titan full-sized pickup truck, due out sometime next year. Boasting more than 300 horsepower and approximately 550 pound-feet of torque, Nissan's newest Titan diesel should have approximately 25% more pulling power than its current gas-powered light duty pick-ups.
Commenting on these developments, Dr. Steve Dawson, CEO of SinterCast, which developed the cylinder blocks for the Cummins engines, noted in the Nissan announcement that "the increased use of diesel engines provides an important contribution toward helping OEMs meet the continual increase in Corporate Average Fuel Economy (CAFÉ), as the standard increases from 27.5 miles per gallon (8.6 litres/100km) in 2010, to 54.5 mpg (4.3 litres/100 km) in 2025."
Editor's note: A previous version of this article named an incorrect supplier of the diesel engine for the Chrysler 2014 Ram 1500 pickup. The Fool regrets the error.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Cummins. The Motley Fool owns shares of Cummins. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.