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MATS Report: Cummins makes headway in North American engine market

LOUISVILLE, Ky. -- Despite a slowing US economy and inconsistent freight volumes south of the border, Cummins said ...


The Cummins EPA07 ISX has been well-received by the industry, helping the company increase its market share.
The Cummins EPA07 ISX has been well-received by the industry, helping the company increase its market share.

LOUISVILLE, Ky. — Despite a slowing US economy and inconsistent freight volumes south of the border, Cummins said it enjoyed its best year ever in 2007 and is poised to continue its growth in the coming years.

Jim Kelly, vice-president of Cummins and president of the company’s engine business, said Cummins will continue to diversify in an attempt to “dampen the cyclicality” of the industry. While engine sales have stalled in North America, Kelly said the company is enjoying increased sales in other parts of the world, most notably Brazil.

“Our business outside of North America continues to grow at a very brisk rate,” Kelly said during a press conference here last night.

He said Cummins wrapped up 2007 holding 38% of heavy-duty market share in North America, and initial figures indicate that has increased to 44% in January, 2008. Cummins now enjoys a 45% market share on the mid-range side of the business, he added.

“We feel pretty good about those numbers,” Kelly said. “The customers are voting with their wallets.”

He noted Cummins had only 27% of heavy-duty market share prior to the launch of its EPA07 engine line.

Jeff Jones, president, sales and market communications with Cummins, said the company has increased market share with each of the OEMs that offer its engines. It has also mead headway with “the elusive owner/operator market,” he said.

Cummins now has 42,000 EPA07 engines operating in the real world, many nearing 100,000 miles. Jones said “they are performing as we promised.” He said the engines are achieving fuel economy better than or equal to Cummins previous generation engines and that there have been very few warranty claims. As a testament to the engines’ real-world performance, Jones said the top 100 North American fleets are operating close to 50% Cummins power.

As for 2010, Kelly reaffirmed Cummins position that it can meet EPA2010 emissions standards for heavy-duty engines without the use of exhaust aftertreatment. However, Cummins will employ Selective Catalytic Reduction (SCR) on its mid-range engines. On the heavy-duty side, International has joined Cummins in electing for in-cylinder EGR solutions to meet 2010 emissions standards while Daimler and Volvo have opted for SCR. Kelly would not predict which technology will ultimately win out in 2010.

He said Cummins is “not going to be part of that debate, because we have a foot in each camp.” However, he stressed offering one solution for heavy-duty customers and another for mid-range users “Is not because we’re hedging our bet. It’s because we’re offering the best fit for each application.”

Cummins feels SCR is practical for medium-duty applications where a truck typically returns home daily. Urea supply issues may affect long-distance carriers, however, which is one reason why Cummins opted against SCR for its heavy-duty engines.

The company has already started developing its 2010 engines and plans to begin customer field testing in May.


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