Internal restructuring of Cummins intended for parts and emerging markets

Cummins Inc. of the United States recently announced that it will split the original four divisions into seven, and at the same time undergo a series of restructuring on the internal structure.

According to Cummins executives, in 2004 Cummins' sales and profits all reached the best level in history. If the joint venture is included, its sales are close to US$10 billion, and its share price has reached the best level in history for the third time. In this context, the company's board of directors adjusted the management structure with the aim of further releasing production capacity.

Parts are pushed to the front

After the adjustment, Cummins's seven divisions were the Engine Division, the Power Systems Division, the Global Distribution Division, the Fleetguard/Nelson Division, the Emission Solutions Division, the Holset Engineering Company, and the fuel system. Division. Among them, the latter four business units form part companies.

Cummins officials explained that the adjustments made to the production and sales of engine parts and components are relatively large. Because the standards for exhaust emissions are getting higher and higher, the requirements for engine parts are becoming increasingly stringent. Turning the original internal service sector to face the market independently, the return on investment will be greatly improved.

In fact, the filters manufactured by Fleetguard, a wholly-owned subsidiary of Cummins, have long since started to serve other engine manufacturers. The reorganization will allow the Fleetguard model to be transplanted to other parts production departments.

Emerging markets favored

The adjustment of parts and components is mainly aimed at the European and American markets, while another adjustment of Cummins is closely related to the Chinese market, namely the formation of a new department - Emerging Markets and Business Department. The department packaged fast-growing markets such as China, India, and Russia.

The starting point for emerging markets and business units is to create a model that is suitable for global operations. Cummins has 50% of its business outside of North America, and these markets are growing rapidly and need to be integrated.

It is reported that Cummins will invest 74 million U.S. dollars in China this year, 60% of which will be injected into Dongfeng Cummins. Dongfeng Cummins produced 124,000 engines in the past year. Dongfeng Group has become Cummins's second largest customer in the world.

The significance of establishing an emerging market and business unit lies in the sharing of resources. The synergy between emerging markets will further optimize investment.
View related topics: Cummins - world-class engine manufacturer

Clutch Master Cylinder For HONDA

Clutch Master Cylinder For Honda,Car Clutch Master Cylinder,Car Clutch Pump,Car Cylinder Clutch Master

ZHEJIANG BENTENG INTELLIGENT BRAKE SYSTEM CO.,LTD , https://www.cnnakol.com