Cummins marketing strategy to focus on OEMs

COLUMBUS, Ind. (May 14, 2001) — Cummins said it plans to cease discounting to dealers and end users and instead focus all its attention to working with OE partners to set the pricing for their customers.

The benefits of this approach, Cummins vice-president Ed Pence told trade journalists during a meeting last week, is long-term price stability, stronger design and engineering relationships, and profitability at the company’s struggling engine division.

Pence said the vehicle/engine product integration strategy, which includes reducing proliferation of engine options, would improve the overall quality of the powertrain. The company currently provides 2000 to 2500 unique specs for each engine family for each OEM.

In the past year, Cummins has developed stronger ties with Volvo Trucks Norht America, and International Truck & Engine, and the Kenworth and Peterbilt divisions of Paccar.