Friday, Nov 02, 2018 at 00:24
"All Cummins are made in China"
You couldn't be more wrong. Cummins is a global manufacturing corporation, and has manufacturing plants in dozens of countries, worldwide.
Cummins Manufacturing locations
The ISF Cummins is a Chinese-designed engine, specifically built by the Beijing Foton Cummins Engine Co., and it is shipped worldwide.
It is also assembled in the U.S. - using Chinese-built components.
The ISF is a stand-alone Chinese Cummins that owes nothing to any other Cummins engine, apart from the fact the technology in the ISF is BASED on the B-series Cummins engines.
The Cummins ISFThe BFCEC factory
However, the American Cummins engines plants still have the vast majority of their components built in America - particularly the larger Cummins engines.
Yes, they do use SOME parts and components from China, in American-built engines, but not the majority of parts and components.
Cummins grossed US$20B last year, worldwide, and US$2B of their income comes from their Chinese operations. That's just 10% of Cummins total income.
Cummins has 5 engine factories in China, and all 5 factories are Joint Venture companies, with Chinese partners holding 50.1% of the company stock.
This is the only way the Chinese Govt will allow foreign companies to operate in China.
The 5 Chinese Cummins companies are;
Dongfeng Cummins Engine Company - "DCEC".
Chongqing Cummins Engine Company - "CCEC".
Xi'an Cummins Engine Company - "XCEC".
Beijing Foton Cummins Engine Company - "BFCEC".
Guangxi Cummins Engine Company - "GCEC".
The DCEC built the Cummins ISB, ISC and ISL, mid-range 3.9 to 9 litre engines under licence from 1996 - but primarily for the Chinese and East Asian engine market.
These models of Chinese engines have interchangeable components with Cummins engines built in other countries.
FCEC is building the Chinese-designed 10.5L and 11.8L litre ISG series Cummins in China, specifically for the Chinese and East Asian market.
This ISG engine also owes nothing to any other Cummins engine, it is a stand-alone Chinese Cummins.
Now Cummins have "refined" (read - redesigned) the Chinese-built ISG into the
Cummins X12 and X15 - which are being built in America (obviously using a number of Chinese components), and which Cummins are going to sell into the American market.
Cummins X122017 Engines from Cummins
What is going to hurt Cummins a bit now, is the 25% tariff imposed on Chinese-made products imported into the USA.
However, Cummins is saying that it's not a huge problem, just one to be worked around - because the largest percentage of American-built Cummins engines don't use a lot of Chinese Cummins parts.
Cummins will have to pay U.S. tariffs on items produced in their own factories in China
Cheers, Ron.
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