Caterpillar consequences for Cummins

The fallout from Caterpillar’s decision to get out of the highway truck engine market in the US after 2010 has started to reverberate around the North American truck engine makers world.

Almost as soon as the Cat news got out, Cummins released a statement about their ongoing relationship with International despite the agreement between their owners, Navistar, and Caterpillar. International were at pains to reassure customers Cummins would be available in Inters after 2010. The deal announced was to ensure supply of Cummins ISL, ISM and ISX engines.

“The North American on-highway markets have long been important to Cummins, as is our relationship with an important customer like Navistar,” said Tim Solso, Cummins Chairman and Chief Executive Officer. “We look forward to the exciting growth opportunities this partnership represents.”

“Navistar has a long-standing association with Cummins and the ISX engine enjoys significant share in our Class 8 products” said Daniel C. Ustian, Navistar Chairman, President and Chief Executive Officer. “We are pleased that this agreement will extend our relationship through 2013.”

“Navistar and Cummins have a strong partnership and history of collaboration in serving our mutual customers,” said Ed Pence, Cummins Vice President and General Manager – Heavy-Duty Engine Business. “We have been working closely with Navistar to integrate our 2010 solutions, and this agreement will deliver the right technology to meet customers’ needs for operational efficiency and low operating costs, with high performance and reliability.”

The statement says part of the long-term agreement, beginning in 2010, Cummins will be Navistar’s exclusive supplier for 15- and 16-litre big bore diesel engines (Cummins ISX) for Navistar’s International trucks in North America.

Cummins engines in 2010 will incorporate an integrated technology solution that includes the XPI High Pressure Common Rail (HPCR) fuel system, next generation Cooled Exhaust Gas Recirculation (EGR), advanced electronic controls, proven air handling and the Cummins Particulate Filter.