Fuel Smarts

Cummins Makes Big Electrification Move

June 15, 2017

In the long term, Cummins officials say electrification will come to every market segment it serves today in one form or another. Photo: Cummins
In the long term, Cummins officials say electrification will come to every market segment it serves today in one form or another. Photo: Cummins

Cummins announced that it will have a fully developed, all-electric powertrain available and on the road for customers in 2019, with a range-extended electric vehicle coming in 2020. The company made the announcement during a conference call Wednesday evening.

Tom Linebarger, Cummins chairman and CEO, noted in opening remarks that the transportation industry is at “critical juncture” today. “We understand that electrification is coming and that the world is changing,” Linebarger said. “Regulations and a technological point of view are driving these changes, and we think that means opportunity. Cummins is a power technology company. We will continue to innovate with new technology and look for ways to disrupt ourselves, instead of having our competitors disrupt us. We will bring the right technology to markets – not just trucking -- that will help our customers win while being a leader provider of those products in the future.”

Julie Furber, executive director of Cummins’ electrification business, said the company will leverage its knowledge and capability to offer entirely new powertrain solutions in the future for commercial and industrial markets. This initiative will begin next year with the introduction of a fully electric transit powertrain, closely followed by an extended-range electric vehicle in 2020.

In an email to investors, financial advisory firm Stifel noted, "To us, that’s a big deal as it demonstrates the company is further along than was previously known in addressing what is likely its single biggest long-term risk: that electric will replace diesel as the dominant fuel source for commercial vehicle powertrains."

“At Cummins, we think we know things about electrification our competitors do not,” Furber said. “In the short term, we believe electrification will come to transit bus, P&D and material handling segments. In the long term, this technology will come to all of the markets we serve in one form or another.

"Environmental and noise reduction regulations along with social pressure for environmental sustainability will drive adoption. As a leading provider of this technology, Cummins must make sure the cost and performance perspectives of this technology is viable so the long-term economics are in place for favorable cost of ownership later on, as trucks, off-highway and mining equipment as well as stationary power segments turn to electrification.”

Below, Tom Linebarger, Cummins chairman and CEO, talks about the company’s integration of electric vehicles into their product lineup with Bloomberg's David Westin on "Bloomberg Daybreak: Americas." (Source: Bloomberg)

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