New road for Cummins

June 1, 2001
Cummins Engine Co. is making a major strategy shift in the way it sells its engines to the trucking market this month. At the heart of its new business philosophy is the belief that the truck manufacturer must be given the lead in coordinating total vehicle cost and pricing issues. Consequently, Cummins will stop giving direct discounts to dealers and end-users, thus allowing its truck OEM partners

Cummins Engine Co. is making a major strategy shift in the way it sells its engines to the trucking market this month. At the heart of its new business philosophy is the belief that the truck manufacturer must be given the lead in coordinating total vehicle cost and pricing issues. Consequently, Cummins will stop giving direct discounts to dealers and end-users, thus allowing its truck OEM partners to better coordinate such price breaks.

Ed Pence, Cummins vp-sales, said the company is also focusing on several additional strategies that will enable Cummins to act more like the internal engine division of its OEM partners, rather than simply a truck component supplier.

The company's long-term agreements with PACCAR, Volvo Trucks North America and International Truck & Engine Corp. will allow it to offer those OEMs long-term price stability for engines, as well as “collaborative engineering and marketing opportunities” that can help reduce costs for Cummins and the OEMs, said Pence.

For Cummins, closer collaboration with the OEMs will allow it to eliminate redundant selling and marketing functions. And it will reduce the number of engine options it offers by cutting out unnecessary accessories that few customers ask for, rather than eliminating engine models or ratings.

About the Author

Sean Kilcarr | Editor in Chief

Sean reports and comments on trends affecting the many different strata of the trucking industry -- light and medium duty fleets up through over-the-road truckload, less-than-truckload, and private fleet operations Also be sure to visit Sean's blog Trucks at Work where he offers analysis on a variety of different topics inside the trucking industry.

Sponsored Recommendations

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

How Electric Vehicles Help You Prolong the Life of Your Fleet

Before adopting electric vehicles for commercial/government fleets, prioritize cost inquiries. Maintenance is essential; understand the upkeep of EV fleets. Here’s what you need...

Voice your opinion!

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