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Cummins - to find new profit point

Author : Qijing Date : 2015-7-24 9:08:25
While the Chinese market last year, Cummins sales contributed about two percent, but looking back now Cummins still have their own shortcomings in the expansion of the Chinese market, "a little bit slow on the local development strategy", talking about the development of the Chinese market Cummins, a relevant person in charge frankly.

Interestingly, the face of the global construction equipment market is generally sluggish, now chairman and CEO of Cummins Rambo text (Tom Linebarger) mouth constantly pop out "new normal economy," such words with Chinese characteristics, his judgment is "in the new economic normal, regardless of economic or social investment, are likely to gradually slow down. Every business needs to re-adjust his marketing strategy. Cummins economic environment is also facing some adjustments." China has been in continuation of the open joint ventures, diversification, Cummins localization strategy has a kind of logic?

In early June this year, Prime Minister Li Keqiang met here to attend the Third Roundtable CEO of the Global Commission on behalf of, the text will be Rambo in his column, not only that, on June 8, Dongfeng Cummins and Dongfeng special low-profile signing of a commercial vehicle parts of new strategic cooperation agreement. And Cummins investment in China is still increasing. 2015, Cummins high-horsepower engine technology R & D center and production base in Chongqing foundation to start, is expected to be completed by the end of 2016 the construction of technology centers, at the end of 2018 to complete the construction of production lines and supporting facilities.

"Cummins strategy in China is consistent with the direction of Chinese manufacturing 2025." Rambo Wen told the Economic Observer Online, not only that, they will study how to use the Internet, car networking, including the growing trend of things, the use of Cummins's new technology, including remote diagnosis, remote monitoring technology, to participate in the wave of big data era where interoperability.

As a power equipment manufacturer, a US Fortune 500 companies, Cummins has the pursuit of advanced technology strong genes. The company is a self-taught American automotive technicians and mechanical inventor in a successful banker and investor funding born in 1919, the long course of development several times suffered a crisis of survival, but without exception, by technological innovation and miraculous resurrection, such as the Great Depression hit the United States, in 1929 the company founder to a diesel engine mounted on a car carrying the old Packard limousine investors go for a ride, finally persuaded by the good performance of diesel cars investment home continue to invest. The early 70s of last century, the worldwide energy crisis and "economic stagnation" throughout the United States, Cummins finally after a series of adjustments in the 1980s with a large number of new models for the characteristics of the product family, the rapid increase in market share as well as to overseas expansion.

However, the localization of the past mainly to Europe or the United States mature product platform to localize production in China. Although such an approach mature platform brings the advantage of experience, reducing the risk, but failed to be tailored for the Chinese market and the development needs of Chinese customers. Cummins aware of this point, in 2008, after the commencement of a new platform developed specifically for the Chinese market demand, the most typical example is the joint venture of Cummins and Foton light produced by ISF and ISG heavy-duty engine. We are input to develop products for the Chinese market, while its excellent performance to win the favor of the global market.

Cummins Group consists of four distinct but complementary business units, including the engine division, power division, components division, the distribution division, engine division plate, 24 Cummins engine series which has been There are 15 local production in China.

Many years of experience in China layout, text, etc. make Rambo Cummins executives at this time to make such a judgment, although faced with some adjustments in the economic environment, but there are still three points at this time becomes, that is to find a good partner, R & D is more suitable for Chinese customer demand for products and the use of new technologies or find a new spot to create value for the end user.