Cummins Inc. Exclusive Diesel Engine Supply Agreement Extended By Daimlerchrysler

[BIG BOB]

Here is the Press Release!



http://www.cummins.com/na/pages/en/mediaresources/pressreleases/pressrelease. cfm?uuid=00013660-2C40-1F9D-9F0980C4A8F00000



And from my investigation, NO EGR!

 

[LightmanE300]

"Although specific terms of the agreement were not disclosed, the engine system agreement includes consideration of Cummins as a supplier for the diesel engine aftertreatment system. "



What does that mean? Doesn't exactly sound like they are saying cummins will be building the engines, it sounds like they are going to be considered for something. Not sure what aftertreatment system means...

 

[Vaughn MacKenzie]

Nice



I wonder if it's an extension of their 2007 contract, or if it's mainly focused on the Fleetguard aftertreatment products? I expect they'll release more specifics soon as we draw closer to January. Things keep looking brighter despite all the emissions challenges the EPA keeps imposing. While Ford is trying to get a diesel engine that runs reliably, Cummins can put their resources toward furthering their emissions technology



Vaughn



EDIT: I see Cummins is really doing well financially. In the 3rd quarter they had $1. 63 Billion in sales and $24 million in profits Oo.

 

[Vaughn MacKenzie]

Here's another quote from today's press release



"Cummins engine shipments for the Dodge Ram were up 28 percent from the year-ago quarter [3rd qtr 2002] and up 10 percent from the previous quarter; the truck itself has increased its share in the pickup truck market over the past 12 to 18 months. Customer experience indicates the performance quality of the new Ram engine introduced in mid-2002 has already surpassed its predecessor engine. "

 

[KCJackson]

Originally posted by LightmanE300

What does that mean? Doesn't exactly sound like they are saying cummins will be building the engines, it sounds like they are going to be considered for something. Not sure what aftertreatment system means...

This means that DC will solicit emissions treatments from Cummins as well as other suppliers for the ISBe. Obviously it would be nice to keep the whole thing Cummins, but if another supplier can come up with an advanced cat-con that would match the Cummins cooled EGR system in terms of meeting EPA/CARB standards, and at a competitive price, DC would probably opt for the simpler cat-con solution to its emissions issues.

 

[BIG BOB]

Originally posted by KCJackson

This means that DC will solicit emissions treatments from Cummins as well as other suppliers for the ISBe. Obviously it would be nice to keep the whole thing Cummins, but if another supplier can come up with an advanced cat-con that would match the Cummins cooled EGR system in terms of meeting EPA/CARB standards, and at a competitive price, DC would probably opt for the simpler cat-con solution to its emissions issues.

Cummins already has a exhaust system that meets EPA. It is built by Fleetguard (which Cummins owns). Here is a link for the system:



http://www.cummins.com/na/pages/en/mediaresources/pressreleases/pressrelease. cfm?uuid=000CD8A0-2EE1-1F94-94EA80C4A8F00000

 

[JHayward]

Vaughn,



My guess is that this represents an extension of the agreement to '07. With the original contract due to expire in a few years, and the engines getting significantly more expensive as of Jan 1 '04, DC was probably making noise about looking around for a more cost effective engine supplier for the Rams. Since DC is Cummins' largest customer for this engine, they have significant leverage to try to reduce price. Cummins, not wanting to lose their largest customer, must have sharpened their pencil and dropped the price as much as possible, in return for a much longer contract to allow them to make back what they gave in price concessions.



Just my opinion, but that's the way I've seen it work these days.



Jack

 

[rashwor]

The link posted by Big Bob...

above sounds like it may be the ticket for our beloved Cummins. I hope so... it should be easily "fixed" should it become a "problem". Oo.

 

[KWIKKURT]

I'm suprised that they don't even consider Ferd Motor Co. for the exhaust sys. After all "they own Cummins"

 

[Vaughn MacKenzie]

LOL @ KWIKKURT



JHayward I think you are right, D/C will not bear the costs of complicated EGR systems, and this is the answer Cummins came up with. But I thought there was a contract in place already through 2007. Heck maybe it's on 'til 2010 now

 

[JHayward]

Vaughn,



All that I've read in the media indicated that the original contract went to '07, so you're probably right - 2010 and beyond. DC probably doesn't realize how fortunate they are that this is the case!



Jack

 

[rashwor]

I don't want to rain...

on the parade. If you read the anouncement, it really did not say that the length of the engine supply agreement was extended. It said that Cummins was in the running to supply aftertreatment solutions. If you read this literaly, it means the agreement was "expanded" to include aftertreatments, and not "extended".



Personally, I hope you guys are correct and there is an extension in the engine supply agreement as well. This would be a good thing.



Flame suit on. :--)