Cummins Inc. this year expects to see market share gains driven by its medium-duty diesel sales and a rebound in heavy-duty engine demand beginning by the end of the first quarter.
The predictions were part of a Cummins announcement that the U.S. Environmental Protection Agency has certified its truck engines for 2007. Full production on all engines began January 2. The 2007-certified Cummins truck engines include the heavy-duty ISX and ISM and the mid-range ISL, ISC, and ISB.
In its heavy-duty engine business, Cummins said it is keeping an eye on inventories to gauge how severe the sales drop will be this year.
“While North American heavy-duty Class 8 truck sales will likely be down 30 to 40% [in 2007], Cummins year-over-year North American heavy-duty truck volumes could be down as much as 50% depending on the amount of 2006 engine inventory at OEMs at the beginning of [2007],” Cummins said in an emailed statement to FleetOwner.
Cummins noted that the sales drop will be worst in the first half. “Our 2007 shipments could recover quicker than the industry, as we believe our new products will be better than the competition, which will result in increased market share toward the end of the year.”
Based on this outlook, Cummins said it intends to retain its entire permanent workforce at all of its North American engine manufacturing plants.
“Our strategy is to keep our permanent work force intact in order to respond to the higher volumes that are expected in our heavy duty plants after Q1 of next year,” Cummins said.
To preserve its permanent workforce, its Jamestown engine plant and its heavy-duty machining plant will eliminate its temporary workforce and overtime, schedule shut-down days and do training and maintenance, Cummins said.
On the medium-duty side, Cummins expects to see its market share grow, thanks to the inroads it is making with OEMs.
“For example, Cummins has a new long-term agreement with Paccar for our mid-range 6.7L and 8.3L engines,” Cummins stated. “The engines will be branded as Paccar engines and in 2007 will be the only engines available in the Kenworth and Peterbilt medium-duty conventional trucks in the United States, Canada and Mexico. Cummins 6.7L and 8.3L engines, known as ISB and ISC respectively, will continue to be available in other medium-duty trucks, RVs, buses and emergency vehicles.”
For more information, go to www.cummins.com
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