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Cummins heavy-duty engine has never been mainstream business

A global leader in enterprise power equipment manufacturer Cummins, founder Clessie Claire Cummins is the world's firstdiesel engine foresaw immense business potential inherent in entrepreneurs, early in 1919, incorporated Cummins. With the changes in market demand and business development, Cummins 2012 revenue of $ 17.3 billion US dollars, and employs 34,600 people, has become a veritable "Big Mac", which has long been the main industry is not limited to the engine – of course, the diesel engine still its iconic main industry.



And Clessie business acumen and discerning exactly the same is its successor Irvine? Miller. In 1975 he look for the Chinese market, the future of unlimited, he against all the odds, in 1979 set up the first Cummins China office in Beijing. 1981 signed a license agreement with China National Heavy Duty Truck, kicked off with local Chinese partners strategic, manufacturing Cummins high-horsepower (M, N \\ K series) diesel engines, turbochargers, filters and other products, It is one of the earliest foreign companies in China to localize production.


In recent years, China highway, electricity supplier business development, as well as an increase in international road transport operations, as well as business-to "zero inventory" requirement to enhance and stimulate the rapid development of the logistics industry, the demand for high-end road tractor head up. This requires China's heavy truck (the card) technology development times. 2001 Chinese heavy truck vehicle emissions mainly around 7L, 2008 rose to 8L, 2009 rose to 10L, 2010 rose to 12L, 13L now even higher emissions of diesel engines gradually become the engine. This promotes lower combined fuel consumption, more environmentally friendly and more reliable large displacement diesel engine become a new driving force of China's heavy truck demand.


Performance and technology is the "twin brother", they always go hand in hand together to achieve common development. According to Chinese and foreign enterprises, "granted" to understand, many people may feel Cummins technically ahead excels, it is merely a "beautiful mistake."


In the design of the card concept design heavy truck engines


Cummins engines are mainly used in trucks, buses, cars, light commercial vehicles and pickups and other highway vehicles.


In the US market, the pickup is the so-called "heavy-duty trucks." Because countries are different, the United States "heavy truck" and China's heavy truck is not a concept. Because of different standards in the US heavy truck operators, but to China, can at best be in the cards (medium truck). American pickup, also known as Heavy Duty, but the United States also has the card in the true sense, can not be said that heavy pickup trucks.


Since China market rally optimistic, Cummins did not want to miss the opportunity, continuously push forward the Chinese heavy truck engine market.


This enterprising business acumen worthy of recognition, but because there is no corresponding accumulation of technology, Cummins heavy-duty truck engines in China's road to go anxious, implied greater risk, because Cummins is a medium-truck engine design concept to design heavy-duty truck engine, to the vehicle reliability and safety and security. In the Chinese market, such as Cummins main push of heavy truck engines D series is slightly modified from the M12, and M series at best only be considered "medium truck concept," the heavy-duty engines. Cummins new G series is not D, G series originally called M12, is an M series.


China and the United States in the heavy truck tonnage, are apparently different. In the US heavy truck concept is eight, or 15 tons, but the heaviest (goods vehicles total) was 36.2 tons. In China, heavy truck concept is much more than this limit. China's heavy truck tractor standard payload of 49 tons, 55 tons weight limit than the US heavy truck ceiling nearly 20 tons more. This requires a higher engine power. Imagine, concept design of medium-heavy truck engines, what there will be dire consequences.


Adapt the user environment in China, it may be another problem faced by Cummins. American pickup, his life may just ran 200,000-300,000 kilometers; while in China, heavy truck ran this year could number, usually a car to scrap, to run on a 1.2 million km. China's heavy truck usually used to pull the cement, steel, sand geometric major cargo requirements "pull far, run fast." A Chinese heavy truck generally equipped with two drivers, a car, a rest, take turns, on the road all night. This engine reliability of the higher requirements, and the requirements of Chinese users, low fuel consumption, more money. While Cummins also raised the fuel corrective measures, but the US engine technology is notoriously large fuel, Cummins engine design and development, more or less influence by this concept.


Despite being the world's leader in the diesel engine, but Cummins investment in R & D but intriguing. I found from the related information, has a staff of more than thirty thousand Cummins, researchers only a few thousand. 2006 Cummins and Dongfeng Motor in Wuhan, the establishment of cooperation in East Asia engine research and development center, is the first engine of its R & D center set up in China, until now, this R & D center in total less than $ 20 million investment in only four engine test bench . Cummins in China's overall investment is not large. While Cummins attack on all fronts, in China or owned or joint venture, set up a lot of projects, but only over two hundred million US dollars of total investment, that in 2005 global board of Cummins held in China, one of the main topics discussed was the need for capital increase. Cummins R & D investment in China does not, it should also be in the United States.


Business model or harm to China's independent innovation


Cummins is stepping on China's reform and opening drums come. Its development in China is also a response to the "technology for the market," the call of the Chinese government initially proposed. Cummins usual business model, is to technology as bait, flicker vehicle manufacturers and their cooperation, joint ventures, compared with automobile companies supply engines and other components, in order to staking.


This business model is very clever, but also in line with the intention of controlling the vehicle automobile companies core component technology – Engine technology expectations, but also can crowd out other competitors, dominate the market in one fell swoop, save the trouble and expense of expanding the market.


Cummins in 1981 signed an agreement with China National Heavy Duty Truck, automobile engine plant in Chongqing Cummins high-horsepower (M, N, K series) diesel engine. 1996 Dongfeng Cummins Engine Co., Ltd. was established to produce horsepower Cummins C Series engines. 2007 Cummins and Shaanxi Automobile Heavy Duty Truck Group, a joint venture of Xi'an Cummins Engine Co., Ltd., the production of gold horsepower (308-440 hp) Cummins M 11 liters full electronic control system of diesel engines. Recently, Cummins and Foton jointly with China, cooperative R & D heavy-duty engines.


In this way, better and more economical Cummins gained some customer resources, there are at least established good cooperative relations with its Dongfeng Motor, Chongqing Automotive Group, Shaanxi Auto heavy vehicles, Foton Motor, in their own production of heavy trucks, some use of produced by the joint venture engine. But it is interesting, Cummins engine probably did not put advanced technology to China, from now, 17 Cummins engine series, only 8 series of products produced in China. This shows that the introduction of technically Cummins left flac, with their access to China's technology is not the most advanced. If so, Cummins to China, Chinese partners did not change to the advanced technology, but lead to Chinese enterprises, "throw good money after bad." Of course, the business model is not the Cummins to Phi Mi, Xi'an Cummins at least do not do it. Cummins in China's heavy-duty vehicle engines has not done, heavy Kang M also directed heavy vehicles. M itself is a successful engine, did not do well in the United States, in Chongqing, Xi'an has not done, and now got Fukuda.


If you let Cummins business model continues to indulge gravity, it could cause another important issue: that is undermining China's aggressive on independent research and innovation, and become overly dependent on Cummins, resulting in their own R & D capability is severely weakened.




In fact, compared to Cummins, China's own brand engine has to catch up, in some ways even surpasses. In particular Cummins came out on top than on adaptability. Because independent brands better understand the Chinese market, China is more depending on the particular environment, developed in line with Chinese standards and user demand for personalized products.


In fact, the US heavy truck and heavy truck standard standard large differences in Chinese. China's heavy truck standards are built on the basis of EU standards, Cummins US-based heavy truck standards and research and development concepts in the car to do the heavy truck, in the Chinese market will have inherent disadvantages. This can be seen from the market share: According to Reporters do not fully understand, in order to specialize in heavy duty power Weichai Power, for example, its market share in the Chinese heavy truck market has been stable at 36% -40%, a figure which makes Cummins It can offer.


Why own brand of heavy-duty diesel engine could be so trusted internal users? Some experts believe that own brand has five advantages: First, fuel-efficient, especially in the case of overload. Save 1 liter per hundred kilometers of oil equivalent per year to save money 10004 thousand Yuan; second, dynamic, able to adapt to China diverse terrain and diverse needs of customers requirements; third, technically environmental reserves, can adapt to rapid changes in domestic policy; fourth, high reliability and long life. Once, OEMs want to reward one million kilometers without overhaul of users, found that to achieve this standard user too, with bonuses not enough hair; fifth, independent development and integration of international resources, making the most cost-effective products reach Excellent.

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