Attention: TDR Forum Junkies Cummins Looking for Financial Help
5/10/2001 – Published reports indicate that Cummins is looking to its home state of Indiana and to New York for financial assistance.
It's no secret that Cummins' truck engine business has been struggling. Company officials recently announced a major restructuring of the way it will market truck engines, partly as a way to save costs. Previous reported comments by Chairman Tim Solso noted that Cummins will either restructure this business or get out of it.
The Indianapolis Star reports that Cummins is seeking a $35 million loan from the state. Solso recently made a presentation to state lawmakers about the unusual loan proposal, including a pledge to keep the company's headquarters in the state.
Cummins apparently needs the money to proceed with plans to develop a second-generation diesel engine, most likely with Navistar. Solso told lawmakers that the company has used up its debt capability after investing $500 million in developing its new heavy-duty, large-bore engine and then getting hit by a downturn in demand. Last month, the company reported a first-quarter loss of $25 million.
The company now needs to invest another $300 million to $500 million to develop a medium-more engine that meets 2002 emissions standards, according to the Star.
Cummins and Navistar are working on an agreement that would have the companies invest a total of $200 million in the new venture. The rest of the financing would come from the requested $35 million loan guarantee from Indiana and an undisclosed - but apparently larger - financial assistance package from the state of New York. The engine development project would protect 500 engineering jobs at Cummins' headquarters in Columbus, Ind. , as well as 800 jobs at Jamestown, N. Y. , factory where the new engine would be made, according to the paper.
Stark's Component Ledger reported this week that talks between Navistar and Cummins will collapse if Indiana doesn't come through with the loan.
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1993 Dodge Prostock Daytona 7:70@172, 1987 Grand National 11:77@115, 1996 Dodge Ram 3500 Dually. Stock with a 5 speed, Home page http://www.home.earthlink.net/~whra3
5/10/2001 – Published reports indicate that Cummins is looking to its home state of Indiana and to New York for financial assistance.
It's no secret that Cummins' truck engine business has been struggling. Company officials recently announced a major restructuring of the way it will market truck engines, partly as a way to save costs. Previous reported comments by Chairman Tim Solso noted that Cummins will either restructure this business or get out of it.
The Indianapolis Star reports that Cummins is seeking a $35 million loan from the state. Solso recently made a presentation to state lawmakers about the unusual loan proposal, including a pledge to keep the company's headquarters in the state.
Cummins apparently needs the money to proceed with plans to develop a second-generation diesel engine, most likely with Navistar. Solso told lawmakers that the company has used up its debt capability after investing $500 million in developing its new heavy-duty, large-bore engine and then getting hit by a downturn in demand. Last month, the company reported a first-quarter loss of $25 million.
The company now needs to invest another $300 million to $500 million to develop a medium-more engine that meets 2002 emissions standards, according to the Star.
Cummins and Navistar are working on an agreement that would have the companies invest a total of $200 million in the new venture. The rest of the financing would come from the requested $35 million loan guarantee from Indiana and an undisclosed - but apparently larger - financial assistance package from the state of New York. The engine development project would protect 500 engineering jobs at Cummins' headquarters in Columbus, Ind. , as well as 800 jobs at Jamestown, N. Y. , factory where the new engine would be made, according to the paper.
Stark's Component Ledger reported this week that talks between Navistar and Cummins will collapse if Indiana doesn't come through with the loan.
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1993 Dodge Prostock Daytona 7:70@172, 1987 Grand National 11:77@115, 1996 Dodge Ram 3500 Dually. Stock with a 5 speed, Home page http://www.home.earthlink.net/~whra3
