Our line of Cummins headquarters of Cummins Engine Business and Vice President Jennifer Rumsey was for tomorrow, coincidentally, Jennifer is actually just returned to the US from China. China Cummins is a very important piece of the business market, both from the current market size and future growth.
For us, in addition to the features of the American truck market is very interested in business development in China Cummins is an important topic in this discussion, Cummins engine as the world’s leading enterprises, with resources worldwide operations. In the last year, Cummins global R & D investment of $ 754 million. But how to make technology is always a challenge to stay ahead of Cummins face? Let us understand together through interviews.
Application of customized products for the market
Edit: Mid-America Trucking Show on heavy card we see relatively large displacement engine to achieve 15L or 13L, and we would like to know why the United States can achieve such a big truck?
Jennifer: This is the United States and China are not particular, as can be seen in China to enhance the power, but more relevant and road infrastructure. US infrastructure from 1960 to now has been very stable, very well-developed highway network. Unless the government mandated regulations larger displacement engine or truck carrying capacity, or the displacement will not be much change. And China, the Chinese infrastructure development has been more access highway is completed, the increased engine power actually driving speed.
Edit: American truck their average speed is about how much speed to fit these conditions, the engine or the supply chain have those characteristics??
Jennifer: US highway speed limit at 65 miles / hour (104.6 km / h), but also from the perspective of the Cummins engine designed to avoid speeding at 65 miles / hour to achieve the best fuel efficiency optimization. If you are over 65 miles per hour, but will reduce fuel economy. So encourage drivers to achieve the best balance of fuel efficiency and speed, proactive protection against speeding.
In fact, the United States and China in different road conditions and the driver’s driving habits are also different. From the perspective of Cummins in the product development process optimization into account a variety of factors, such as the local driver’s cultures, different driving habits, as well as road network, these products we are doing experimental development should be considered. Including frequent shifting and other driving habits have a significant impact on fuel economy. We must find the best balance of fuel economy and driving speed from Cummins for the development process.
Edit: We mentioned the US high-powered engines, and domestic infrastructure construction and development of the logistics of more and more high-powered, but the engine is not the same as naming and North America, Cummins how to distinguish?
Jennifer: From Cummins perspective, we have adequate coordination in global product matrix, although the name is not the same, but many product platform are interlinked.
Actually it takes advantage of the Global Platform, our parts in the US and European markets have been well developed, will be a very good application of new products in China above. Because the US market and the Chinese market is not the same customer needs, we should give full consideration to different markets, take advantage of the Cummins global resources advantages.
Technological upgrading trend: AMT + car networking
EDIT: We noticed a phenomenon in the central United States Truck Show, several large groups were all to show their power chain, such as Pekka, Daimler. Also see the car or the power aspect ingredient in Europe and the United States kind of fusion or mutual influence. Cummins as an American independent vendor, is there some planning to do some cooperation or in the European market.
Jennifer: Cummins Power chain has also launched a lot of cooperation, especially to do the show and when to work with Eaton. Very strong in the North American truck trend is converted from manual to automatic transmission, automatic transmission the most important is to achieve optimal economy, to bring the greatest value to the driver, customer demand also contributed to Cummins and power chain to do better.
Cummins’s leadership in the North American market is very obvious that we, as the world’s leading supplier does not stick to the advantages of North America. Is always looking for ways to further optimize the performance of our products, even including finding transmission control system for better performance optimization to customers and create value, we also explore the multi-faceted technical prospective study.
Edit: Eaton heavy truck transmissions in the domestic market share is relatively low. Cummins has not considered in China and other companies to do more in-depth look at the transmission of cooperation?
Jennifer: Eaton very high market share in North America, the Chinese market has not reached its market performance of the others. But Cummins never exclusive cooperation, we will actively explore other opportunities for cooperation from now, no other information can be disclosed, is still looking to explore them. In recent years, see a lot of trends, the engine business through product technology itself, the use of car networking information systems. May be provided in aftermarket system diagnostics to monitor driver performance, optimized driving behavior. Cummins also introduced in this advantage.
Jennifer: Vehicle Information technology is the future of a very strong core competitiveness, we also see the importance of after-market services to enhance, or whether we are in China, are actively explore intelligent information technology in the United States. But in China and the United States is not exactly the same as in the United States we do not own the hardware, the system not to sell products but to sell smart technology, such as reading the data in order to analyze the customer achieve good driving habits, optimal fuel consumption analysis, selling wisdom.
In China it was sold, wisdom also sell system products, because we do away with this type of system in China Cummins days. Secondly, there are the same parts, are to utilization of data analysis and diagnosis and integration capabilities, deliver the most critical information to customers, it is possible for customers to provide good driving behavior, increase the efficiency of the whole team. These are the future to achieve the function.
Meet different market needs to understand the customer wishes to make the most of the engine manufacturers
Editor: Before we visited a number of teams, including some American truck customers mentioned in the show, you can go to customize your own configuration, such as the engine. This custom was introduced to American culture.
Jennifer: entire truck culture in North America have also been changes and progress, including our customers now have more choices, but does not mean that there is more engine providers on the market. On the contrary, because the strict enforcement of regulations, some of the technology manufacturers have withdrawn from the market not suited to, but now the engine is not particularly large alternative.
But increasingly selective customers means customers can point to a single type of trucks assembled themselves power, for example he chose self-powered truck OEMs both to OEMs can be as long as the Cummins engine.
Challenge as an independent engine manufacturer Cummins bring is how to make technology always stay ahead of this we need continuous innovation, advance with the times, has been providing good products, good technology, but also need good support services.
Edit: this environment is not competitive pressures, greater pressure on OEMs to survive, it requires more technology to improve product or service?
Jennifer: this environment should be more intense competition, because the customer can go to a variety of options, he can choose Cummins engine with the nations of the truck, or Cummins engines with Kenworth trucks. That truck so that he would consider the fuel economy of the vehicle will also consider engine fuel economy. So he decided to be integrated in the purchase of a variety of factors, this really is how to further optimize the engine and OEMs, have put a greater challenge.
Edit: Cummins cooperation with the domestic OEMs have multiple product lines, but in China is another environment, and OEMs will have more right to speak, for example, the car manufacturers with such engines only, other manufacturers may need to match Other engines, Cummins is not also facing such a dilemma?
Jennifer: the problem is indeed the case, we do not the same in the case of China and the United States faces, we use a different engine supply customers in the United States, these clients in a fully competitive market. But China is a different engine supply different OEMs, and then they compete in the market. This point can not be changed at this stage it is Cummins place.
Regardless of the form is still common place, we need to develop the most appropriate technology, the most suitable parts, the best telematics diagnostic techniques, make our products more competitive. Whether it is a single product supply different OEMs, or a different product supply different OEMs. All we need to do targeted development to ensure that our partners are the core competitiveness.
Overall, first we want to keep customers, we must continue to focus on improving product and technology, no matter where this point is the same. Second, whether the United States or the Chinese market, our OEMs have competition, we have to be very competitive business comply with the guidelines, we can not disclose any other OEMs OEMs in a confidential information, that is to win the Cummins OEMs trust The key point.
Resource allocation advantages of globalization
Editor: We just talk it is heavier card angle, the angle of the light truck engines such as ISF has won user acceptance, users named to the ISF light truck engines, there is not there to upgrade emission regulations, ISF leader in technology, to win market opportunities. How do light truck Cummins particular piece of performance?
Jennifer: Because the ISF light engine development phase is to fully listen to the Chinese market and Chinese voice of the customer, a lot of practical development, ISF as a new model, taking into account China’s application user habits, which is why his performance can customers receive the recognition.
Foton Cummins ISF achieved outstanding performance in the light truck market
Secondly, Cummins as the world’s leading engine plant emissions, and other light engine emissions are technically very unique advantages, so that’s why we in the implementation of emission regulations, the advantages can be further highlighted.
Third, this advantage Cummins global operations, global operations to ensure global resources are fully utilized, to be used to open up the Chinese market, such as technology stocks, Cummins in the world with some of the technical resources, research and development center in China as well as the joint venture’s technical team, can seamlessly. The use of global resources and local market knowledge to fully guide customers place the most demand, targeted to do the development, because these are the Cummins success in the Chinese market.
The Editor
Jennifer repeatedly referred to the concept of localization, in North America, China and the needs and characteristics of other markets, investment in research and development, the introduction of highly targeted products, while taking advantage of Cummins resources in the world, keeping in technology, services and other lead, ensure Cummins dominant position in the engine area.