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According to court documents, Chrysler has put at least a temporary halt to the expected light-duty Cummins diesel engine for the Dodge Ram 1500. Mark Land, director of public relations at Cummins, tells our sleuthy friends at PickupTrucks.com:
This is not a surprise. We're OK with this. We've been trying to rework development of the [light-duty diesel] engine over the last several months, given the current economic climate.
It may not come as too much of a shock to anyone that's been paying attention, but it's unwelcome news nonetheless. Just like all other contracts that Chrysler had with its suppliers, the agreement between Dodge and Cummins to build the diesel powerplant was voided when the automaker filed for bankruptcy and the deal was not transferred to New Chrysler. Fortunately, there's still a ray of hope that the engine program will live on. Says Land:
Chrysler hasn't told us they don't want to [build the engine], it just won't happen under the terms of the original contract with the New Chrysler.
Even without Chrysler, Cummins plans to eventually put the light-duty diesel engine into production. There remains a possibility that another automaker (Nissan perhaps?) may pick up the powerplant for use in a consumer-grade vehicle.

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[Source: PickupTrucks.com]