Cummins expects to offer an electric powertrain in two years Photo Sean KilcarrFleet Owner

Cummins plans electrified powertrain system in 2019

June 15, 2017
City buses will likely be the first vehicles equipped with this new technology, the OEM’s executives said.

During a conference call this week with reporters, engine maker Cummins’ executive director of electrification business development Julie Furber said that the OEM plans to have a fully electrified powertrain system on the road by the end of 2019.

She said that transit buses in cities globally would likely be the first vehicles to have the new technology. Other top executives said other industrial and commercial uses would follow.

“We know things about electrification that maybe others don’t,” she explained during the hour-long session with reporters. “We believe that electrified power will come to all of our markets in one way, shape or form.”

Cummins chairman and CEO Tom Linebarger said on the call that the company was upping its investment into electrification while continuing to focus on diesel fuel engines as well. He stressed that Cummins was more than an engine maker, now and going forward.

“We are also a technology company,” he asserted, while also stressing that “the trucking industry was built on the back of Cummins. But we are not just a diesel engine company. Oftentimes because we’ve been so successful in diesel engines people think that’s what defines Cummins, and it isn’t. We are a power technology company.”

Michael Baudendistel, vice president of the Stifel Transportation & Logistics Research Group – a division of Stifel Capital Markets – added in a research brief that the Cummins powertrain announcement is a “big deal” as it demonstrates the company is further along than was previously known in addressing what is likely its single biggest long-term risk: that electric will replace diesel as the dominant fuel source for commercial vehicle powertrains.

“We believe there are still many unanswered questions” about electric commercial vehicles, he noted, the “big three” being cost, weight, and range. For that reason “the pace of adoption [of electric powertrains] will be slower than seen in light vehicles,” Baudendistel said.

“But, no matter the timeline or eventuality, we believe Cummins has demonstrated that it intends to be a major player in that market when it develops and that it will not be caught flat-footed if the market moves away from its core diesel engine business,” he pointed out.

“We believe the reality is closer to how Tom Linebarger [Cummins CEO and chairman] described,” Baudendistel emphasized. “Essentially, the company is a power generation technology company that is investing an a wide range of alternative fuels in order to disrupt its industry leading diesel engines before the company can be disrupted by a competitor.”

He also highlighted Cummins’ plans to increase research and development investment above its historical 3% to 4% range in order to fund investment in electrification and other “digital” offerings, such as telematics. “In our view, money well spent,” Baudendistel said.

About the Author

Michael Catarevas

An experienced, award-winning journalist and editor, Catarevas began his career in trade publishing, working at Chain Store Age Executive and National Home Center News. He also served as the longtime editor for two globally circulated fitness titles, Exercise & Health and Men’s Workout. He then moved to Tennis magazine and tennis.com as executive editor. He has also been a frequent freelance writer, contributing profiles, in-depth news stories, and features for Connecticut magazine and other publications. Before coming aboard at FleetOwner, he was managing editor for the New Canaan Advertiser newspaper. Catarevas previously wrote for FleetOwner. 

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Leveraging telematics to get the most from insurance

Fleet owners are quickly adopting telematics as part of their risk mitigation strategy. Here’s why.

Reliable EV Charging Solution for Last-Mile Delivery Fleets

Selecting the right EV charging infrastructure and the right partner to best solve your needs are critical. Learn which solution PepsiCo is choosing to power their fleet and help...

Overcoming Common Roadblocks Associated with Fleet Electrification at Scale

Fleets in the United States, are increasingly transitioning from internal combustion engine vehicles to electric vehicles. While this shift presents challenges, there are strategies...

Report: The 2024 State of Heavy-Duty Repair

From capitalizing on the latest revenue trends to implementing strategic financial planning—this report serves as a roadmap for navigating the challenges and opportunities of ...