Cummins CEO Makes Strong Pitch for Free Trade

Cummins Chairman and CEO Tom Linebarger speaks at the forum.
Cummins Chairman and CEO Tom Linebarger speaks at the forum.

Cummins Chairman and CEO Tom Linebarger today argued forcefully for free trade, maintaining tariffs and other protectionist steps won’t serve American workers in the long run.

“I know that Cummins and our 2,500 U.S. suppliers – small, medium or large – we can compete with anyone,” Linebarger said during a panel discussion on trade and American competitiveness sponsored by the Business Roundtable and Farmers for Free Trade. “I know we can. And I just want the chance to do it.”

Linebarger and former U.S. Sen. Max Baucus, a Montana Democrat and now Co-Chair of Farmers for Free Trade, took questions from CNBC’s Kayla Tausche during the hour-long forum which was live-streamed and is now available on the Business Roundtable’s website. They were preceded by keynote remarks from U.S. Sen. Orrin Hatch, R-Utah, chairman of the Senate Committee on Finance.

All three men maintained the tariffs proposed by President Trump on imported steel and aluminum would harm not only industries that depend on those items for the goods they produce but could trigger a trade war including retaliatory tariffs from other countries.

Hatch called for bilateral talks with those responsible for the over-supply of steel and aluminum now on the market, maintaining tariffs would do “absolutely nothing” to resolve the issue. He said he fears the benefits of recently enacted tax reform for many companies considering expansion could be undermined by the negatives surrounding tariffs.

Baucus agreed, maintaining the impact of any ensuing trade war could be disastrous for U.S. farmers who increasingly count on exporting a significant amount of what they produce. 

The Business Roundtable is an association of chief executive officers of America’s leading companies. Linebarger, chairman of the group’s International Engagement Committee, lamented that trade has become politicized, maintaining “the idea that all sides can win has kind of been lost.”

He said a good example of both sides winning is Cummins’ high horsepower plant in Seymour, Indiana. The company looked at locations around the world but chose Seymour. Today, about 70 percent of the engines the plant builds are exported outside the U.S.

Linebarger praised the Trump administration for its work on tax reform and he said he likes what he hears about negotiations regarding the North American Free Trade Agreement, which he says needs to be updated after 24 years.

Those developments and Cummins’ strong financial performance have him optimistic about the future – but only if that future is free of trade wars.

“We are ready to compete today more than ever,” Linebarger said. “All we need is a somewhat level playing field. We just need access to markets and we can go out and win.”

blair claflin director of sustainability communications

Blair Claflin

Blair Claflin is the Director of Sustainability Communications for Cummins Inc. Blair joined the Company in 2008 as the Diversity Communications Director. Blair comes from a newspaper background. He worked previously for the Indianapolis Star (2002-2008) and for the Des Moines Register (1997-2002) prior to that. [email protected]

Cummins Electronics and Fuel Systems China Celebrates its 10th Anniversary

The anniversary was marked with a celebration attended by Cummins executives, employees, end-user customers, suppliers and industrial media. 

 

Cummins Electronics and Fuel Systems (CEFS) recently celebrated the 10th anniversary of its China operations with production of the 2 millionth fuel injector and 800,000th Electronic Control Unit (ECU) in its Wuhan plant. Several Cummins executives, including Rich Freeland, Cummins President and COO; Steve Chapman, Cummins Group VP, China and Russia; Cary Chenanda, General Manager of CEFS; and Chen Hua, General Manager of CBU China; joined with representatives of CEFS China’s key OEM and end-user customers, suppliers, dealers, employees, and industrial media to witness the milestone.

Cummins Fuel Systems Wuhan was Cummins’ first fuel systems production base outside North America and Europe, starting operations in 2008. The electronic business was created in 2012, and in 2017 it merged with the Fuel Systems business unit to form Electronics and Fuel Systems business in China. Putting technology development and customer knowledge as its first priority, the Wuhan Components plant has sought continuous improvement, delivering leading products and proven services to its customers. In 2017, CEFS China achieved $238 million in sales: 

During the event, Freeland expressed his appreciation to end-users, customers and partners for their strong support during the past 10 years, and set high expectations for CEFS' future development: 

We are innovating for our customers to power their success and, in turn, improve the communities in which we live and work. This is the formula for our success in the past, now, and also for the future. 

"As China implements more stringent standards on emissions and fuel consumption, Cummins Electronics and Fuel Systems is uniquely positioned to provide the right technology to improve fuel efficiency while meeting tougher emissions," Freeland added. 

The achievements of CEFS are only possible with the strong support and effective collaboration from all of its stakeholders, including Cummins engine joint ventures in China, its dealers, suppliers, end user customers, and its 500 employees. During the celebration, Cummins awarded its customers and end-users with ‘best customer fleet’ and ‘business development’ awards, as well as showing appreciation towards employees through presenting 10-year service awards.

According to Pei Zhengwei, general manager from Sanjiang Logistics Co., Ltd, fuel economy is a key component when choosing who to do business with.

“When making a purchasing order, we are very cautious," Zhengwei said. "A critical reason for us to continuously choose Cummins engines to power our fleet is due to the best-in-class Cummins XPI fuel systems proving the way in fuel economy." 

Celebrating a Production Milestone As Well As An Anniversary

It would only seem appropriate that as representatives from Cummins leaders, partners, dealers and customers looked on, the 2 millionth injector and the 800,000th Cummins Common Rail (CCR) ECU rolled off the production line.

As one of the six major products of CEFS, the Fuel Lubricated System was specially designed for the China market. The system covers the fuel pump, fuel rail and fuel injector, with a maximum pressure is 2000Bar, ideal for 10-14L diesel engines with emissions requirements for National V and VI standards and future fuel consumption regulations.

CEFS products are featured on engines including Foton, Cummins 11-12L diesel engine; Dongfeng Cummins, 8.3-13L diesel engine; Chongqing Cummins 14-50L high horsepower engine platforms; Xi’an, Cummins 11L engine; and Guangxi Cummins off-highway engine platforms. Cummins Component products are also exported to other markets in Asia, Latin-America and Europe. The electronic products offer the customers with electronic hardware, tools, basic software, software development process, platform and services etc. They are widely applied in Cummins engines, after-treatment systems, fuel systems, power assembly and gensets.

Apart from offering the dependable and advanced products, CEFS China has also continuously expanded its aftermarket network, enhancing its service capabilities and developing cost-effective maintenance plans to better satisfy the requests from end-users. Since the end of 2017, CEFS and DBU China have worked together to authorize 45 dedicated dealers with strong fuel system service capabilities.

Cummins Office Building

Cummins Inc.

Cummins is a global power leader that designs, manufactures, sells and services diesel and alternative fuel engines from 2.8 to 95 liters, diesel and alternative-fueled electrical generator sets from 2.5 to 3,500 kW, as well as related components and technology. Cummins serves its customers through its network of 600 company-owned and independent distributor facilities and more than 7,200 dealer locations in over 190 countries and territories.

GILLIG and Cummins Celebrate Electrified Power Partnership

Early this month, GILLIG LLC and Cummins announced a new electrified power partnership at the American Public Transportation Association (APTA) show in Atlanta, Georgia (USA). The technical collaboration work focuses on integrating and optimizing new battery electric technology offered by Cummins that will soon power GILLIG zero-emissions transit buses. GILLIG is the leading manufacturer of heavy-duty transit buses in the United States.

Gillig - Electrified Bus.small_.jpg

“GILLIG has a very strong business relationship with Cummins, and now, with our new technical partnership, we have been able to share our respective technology roadmaps and jointly develop a vision to deliver the most comprehensive, advanced technology battery-electric bus in the market for our customers,” said Derek Maunus, President of GILLIG.

“We have leveraged our companies’ decades of heavy-duty transit experience in the design of the system, and will integrate this advanced technology into GILLIG’s industry-leading proven platform,” added Maunus. 

Amy Boerger, Cummins Vice President — Sales North America commented, “The Cummins electrified powertrain displayed here represents a major leap forward for the industry, and we are delighted that GILLIG will have first access to this important zero-emissions technology. The partnership enables a close technical collaboration so we can accelerate system integration and performance optimization work to leap ahead of others in the industry.” 

Initial development work for the new battery electric GILLIG bus plans for a 200-mile operating range on a single charge. The bus will feature a direct-drive traction motor with peak torque of 3,500 Nm (2582 pound-foot), and utilize energy recovered from a regenerative braking system. A package of e-accessories will be powered by the Cummins system. The initial bus deployment will use a plug-in charger. 

“Beyond the technical development work, the partnership will also encompass the full range of 24/7 service support, diagnostics, over-the-air connectivity, flexible warranty plans and training programs ready for when these GILLIG electric buses enter service,” said Boerger. 

“At Cummins, we see our customer support network equally as important as the technology we offer, and it will be a distinct advantage for us when we introduce electrified systems,” added Boerger. 

Cummins currently powers the GILLIG series of Low Floor, BRT, BRTPlus, Commuter and Trolley buses with a broad portfolio of clean-diesel, near-zero natural gas and diesel-hybrid power. The addition of Cummins electrified power systems to the bus range will align with transit customers looking to introduce zero-emissions buses to their fleets while still maintaining commonality with their existing GILLIG vehicles and service support provision.

“Cummins and GILLIG have been working together since the 1950s to introduce innovative bus power solutions — and I am really excited to be continuing that success forward into the new era of electric buses,” noted Maunus. 

Lauren Cole

Lauren is the Global Employer Brand Digital Communications Specialist for Cummins Inc, where she focuses on social media, employer branding, and digital media. Lauren joined the company in early 2017 while working on a B.S. in Marketing & Communications from Indiana University. She currently resides in Columbus, IN.

Cummins CEO says company positioned for success at Annual Meeting

Cummins CEO Tom Linebarger addresses the company's Annual Meeting in Indianapolis.
Cummins CEO Tom Linebarger addresses the company's Annual Meeting in Indianapolis.

Chairman and CEO Tom Linebarger pronounced 2017 a success and said Cummins is well positioned for the future at the company’s Annual Meeting today in Indianapolis, Indiana (U.S.A.).

“Looking ahead, we are confident that the investments we made in our people, our products and services in 2017 will ensure that the company continues to help our customers win in their markets and create long-term value for our shareholders,” Linebarger said at the meeting at the company’s Distribution Business headquarters.

“We were able to grow profitably and generate record operating cash flow while investing in new products and technologies, new partnerships and positioning for the future,” he added.

Linebarger said 2017 was the first year of broadly improving markets since 2012. Full year revenues were a record $20.4 billion – a 17 percent increase over 2016. Revenues increased 15 percent in North America and 19 percent internationally.

Cummins Indianapolis Distribution Headquarters
The 2018 Annual Meeting was held in Indianapolis at the Cummins Distribution Headquarters (pictured here). 

Excluding charges related to U.S. tax reform, Earnings Before Interest and Taxes for 2017 was 2.4 billion or 12.2 percent of sales compared to $2 billion or 11.4 percent of sales in 2016.

He said an improving focus on Cummins’ core business should prepare the company for future success, including:

*Strengthening the company’s market positions with the launch of innovative new products across markets and around the world.

*Improved customer support through the company’s Distribution Business, which is now organized to better serve customers.

*Reduced costs and improved productivity at every operation in the world.

*New processes and methods to improve product quality at launch and in the field.

This year’s Annual Meeting was held in Indianapolis because the Corporate Office Building in Columbus, Indiana, including the Board Room, was under renovation.
 

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blair claflin director of sustainability communications

Blair Claflin

Blair Claflin is the Director of Sustainability Communications for Cummins Inc. Blair joined the Company in 2008 as the Diversity Communications Director. Blair comes from a newspaper background. He worked previously for the Indianapolis Star (2002-2008) and for the Des Moines Register (1997-2002) prior to that. [email protected]

Cummins TEC Program Launches in Brazil

Rogéria Varella Almeida, coordinator of FAETEC, the educational institution that supports Cummins TEC, addresses a ceremony to celebrate the start of the initiative.
Rogéria Varella Almeida, coordinator of FAETEC, the educational institution that supports Cummins TEC, addresses a ceremony to celebrate the start of the initiative.

Cummins’ global strategic community initiative, Cummins TEC: Technical Education for Communities, recently expanded into a new country with the inauguration of a TEC site in Brazil.

First launched in 2012, Cummins TEC targets the technical skills gap around the world through local vocational education programs. In Brazil, Cummins is partnering with French multinational energy management and automation company Schneider Electric to bring the program to the Foundation for the Support of Technical Schools (FAETEC), along with support from the state government.
 
“The TEC program was created from the need to raise the opportunities of low-income youth for the labor market, and also to fill the gap of skilled labor,” said Luis Pasquotto, president of Cummins Brazil, speaking at a ceremony April 20 to celebrate the initiative. “It is a program of global importance. We are proud to inaugurate it here in Brazil.”

TEC Classroom in Brazil
A Cummins TEC classroom is ready for the new initiative in Brazil.

Mary Titsworth Chandler, Vice President of Corporate Responsibility at Cummins and Chief Executive Officer of the Cummins Foundation, said the mission of corporate responsibility at the company is to “build prosperous communities.”

“Cummins TEC aims to help employers fill jobs that pay good wages by teaching students the technical skills needed to be successful in those jobs,” she said. “Cummins looks forward to working with our Cummins TEC partners in Brazil.”
 
Cummins TEC is built on a five-element framework that helps education partners deliver effective, market-relevant curriculum, teacher training, guidance counseling and the practical experience students need. It is the company’s first global strategic community initiative and today operates in 14 countries around the world at 22 sites.
 
“For us at Schneider Electric it is fundamental to contribute to initiatives like Cummins TEC, which is totally aligned with our company’s mission,” said Cleber Morais, president of Schneider Electric for Brazil. “Causes like these generate positive social impacts by preparing a growing number of youngsters to enter the labor market.”
 
Thirty students have been selected for the first class in Rio de Janeiro through a public examination conducted by FAETEC, whose Vice President Miguel Badeneso, also attended the ceremony. The TEC program will take three years.

blair claflin director of sustainability communications

Blair Claflin

Blair Claflin is the Director of Sustainability Communications for Cummins Inc. Blair joined the Company in 2008 as the Diversity Communications Director. Blair comes from a newspaper background. He worked previously for the Indianapolis Star (2002-2008) and for the Des Moines Register (1997-2002) prior to that. [email protected]

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