Ford buy-out?

[5thram]

I keep hearing rumors, mostly from Brand F drivers, that Ford and Cummins may merge in the future. They're saying Ford is to buy Cummins. I always comment, "They must be needing a good truck engine to replace the PSD. " Anyway, has anybody out there heard this and is there any truth to it?

 

[Alan Reagan]

Ford has owned stock in Cummins for some time now. Will they buy more? I don't think so. Will they merge? Probably not. Ford already uses the 8. 3 Cummins in some of their vehicles. You don't have to own the cow to use the milk. As you probably know, Cummins announced layoffs at the plant that produces the 5. 9. Ford is tight, GM is tight and Dodge has been tight for a couple of years. I don't think anyone is in the mood to buy controlling interest in an engine manufacturer right now.

 

[Joe G.]

Alan,



Has Ford bought Cummins stock since Jan '97? That's when Cummins bought back all their stock that Ford owned, 10%, which gave Ford a seat on the board. Ford's guy then resigned from the board.



I did read in business news a while back that Navistar and Cummins were in a joint venture to develope a new engine. That may be where the rumors about Ford buying Cummins came from.



The Ford owners just won't give up on the "Ford owns Cummins" myth.

 

[work2muchplay2little]

This comes directly off the Cummins corporate website today in their customer satisfaction - FAQ area:



Does Ford own Cummins?





No, at one point Ford owned less than 10% of Cummins stock, but now Ford doesn't own any Cummins stock.



Perhaps something changed?

 

[TowPro]

Who owns Cummins?



Insiders, and people who own 5%+ make up 29%

Institutions own 52% as listed below

The first number is number of shares, the 2nd is value of those shares.



Morgan Stanley Dean Witter & Co. 1,773,666 $69,208,447

Capital Research and Management Co. 1,700,000 $66,334,000

Barclays Bank Plc 1,448,121 $56,505,681

AXA Financial, Inc. 1,113,350 $43,442,917

LSV Asset Management 1,027,558 $40,095,313

State Street Corporation 898,523 $35,060,367

Wisconsin (State Of) Investment Board 803,500 $31,352,570

Vanguard Group, Inc. (The) 799,235 $31,186,150

Dimensional Fund Advisors Inc 745,400 $29,085,508

Tudor Investment Corporation 533,800 $20,828,876

 

[EScott]

"The Ford owners just won't give up on the "Ford owns Cummins" myth. "



My favorite so far is that the reaon for Dodge not making a full four door, long bed truck is that since Ford owns Cummins the contract between Dodge and Cummins forbids it...



I just about died laughing...

 

[jwgary]

FORD OWNS CUMMINS!!!!

or maybe not.

 

[Turbo Thom]

Cummins owns Cummins. The Navistar/Cummins deal is off because of all the money Cummins had to spend on the "common rail" injections system. They don't have the money for any joint venture.

Times ain't looking to good.

Preston

 

[Alan Reagan]

My slip. Thanks for the correction. I had heard that Cummins had bought back all the stock but with it happening in 97 that's probably why I haven't read anything.

 

[Papa Joe]

Couple years back I bought my daughter a foreign station wagon from a dealer who was also the Ford franchise. Waiting for paperwork, I was eye-balling an Excursion (big rig) and he told me the "Dodge is forbidden to make a crew cab story".

I bought it until my TDR buddies set me straight. Joe



PS That's why I hang here