Cummins does something right
Tuned
Joined: Sep 2003
Posts: 311
Likes: 3
From: Arkansas
Originally Posted by westladog
Company name: Cummins Inc.
Corporate Headquarters: Columbus, Indiana
2004 revenues: $8.4 billion
2004 net income: $350 million
These are fishy financial numbers. 8.4 Billion in revenues while net income is only a small fraction. I think they are using funny calculators.
Corporate Headquarters: Columbus, Indiana
2004 revenues: $8.4 billion
2004 net income: $350 million
These are fishy financial numbers. 8.4 Billion in revenues while net income is only a small fraction. I think they are using funny calculators.
Postmaster
Joined: Nov 2004
Posts: 2,511
Likes: 0
From: Marion, VA
[QUOTE=FordLariat
It would have been a MUCH smarter business move to go with either one of the big three except Dodge. Especially from a business standpoint, they would have sold hundreds of times many more trucks by now if they had gone with either GM or Ford, and you can't overlook that.[/QUOTE]
You don't know what kind of deal they made with Chrysler or what their engine building capacity was. I feel sure they talked with all 3 manufacturers and the most profitable for them was the deal with MOPAR. Suppliers have to be careful that they don't build capacity based on a contract with a single company and become so dependent on the single customer. When they do that, they become a slave to the customer and have to make unprofitable concessions to them to keep their factories running.
It would have been a MUCH smarter business move to go with either one of the big three except Dodge. Especially from a business standpoint, they would have sold hundreds of times many more trucks by now if they had gone with either GM or Ford, and you can't overlook that.[/QUOTE]
You don't know what kind of deal they made with Chrysler or what their engine building capacity was. I feel sure they talked with all 3 manufacturers and the most profitable for them was the deal with MOPAR. Suppliers have to be careful that they don't build capacity based on a contract with a single company and become so dependent on the single customer. When they do that, they become a slave to the customer and have to make unprofitable concessions to them to keep their factories running.
Posting Guru
Joined: Mar 2003
Posts: 1,291
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Tim they were on some financial magazine last year. I saw the link but have been through a few computers lately. It put ford around 41%. That was for 03 though. I think ford took a hit in 04 due to reliability problems.
The market is getting very competitive. Things are getting tight. Ford controlled 75% of the diesel market at one point. Chevy and Dodges diesel sales are doing very well. Last year was the best year dodge ever had. According to the only sales figures Ive been able to find Fords sales are down considerably. Even the faithful had a tough time stomaching the problems with the 6.0.
The market is getting very competitive. Things are getting tight. Ford controlled 75% of the diesel market at one point. Chevy and Dodges diesel sales are doing very well. Last year was the best year dodge ever had. According to the only sales figures Ive been able to find Fords sales are down considerably. Even the faithful had a tough time stomaching the problems with the 6.0.
Last edited by Logical Heritic; Apr 10, 2005 at 05:37 PM.
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Posting Guru
Joined: Mar 2005
Posts: 1,079
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http://www.dieselplace.com/forum/showthread.php?t=29275
i just another thread. i will try and find the actual numbers though.
oh ya unless you are a member, i don't believe the site works.
ON EDIT: after some searching real fast i found this
http://www.sema.org/Main/SemaOrgHome.aspx?ID=52342#9
i just another thread. i will try and find the actual numbers though.
oh ya unless you are a member, i don't believe the site works.
ON EDIT: after some searching real fast i found this
http://www.sema.org/Main/SemaOrgHome.aspx?ID=52342#9
Last edited by duramaximizer; Apr 10, 2005 at 05:36 PM.
Senior User
Joined: Oct 2004
Posts: 367
Likes: 0
Originally Posted by Frost13
i just never had much respect for the dodge truck itself. look at is this way. ford outsell chevy and dodge combined. now which would be the better truck to put it in?
Best as always.
Posting Guru
Joined: Feb 2004
Posts: 1,397
Likes: 1
From: pound
From a business standpoint, it would be a MUCH smarter move to go with Ford or GM, Cummins would have made so much more money if they had went with either of the other two...I do believe they tried to get a contract with Ford, but Ford went with a better engine and sold more trucks....If people who drive Fords would prefer a Cummins, then Cummins should have tried harder to get with Ford...At least from a business standpoint, it seems like they made the worst choice they could have made...Sales show that's the truth, too...Can't tell me that the bottom line in any business, even Cummins, isn't to make money...They made a bad move by going with Dodge...Good for Dodge, yeah, because they would have went under (again) without Cummins, but Cummins isn't exactly moving product in this market like Navistar... 
Posting Guru
Joined: Feb 2004
Posts: 1,354
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From: Jackassville
You have to remeber that Cummins makes profit from many different areas of the market. They make industrial enignes for OTR trucks, as well as heavy machinery, and geneators. Cummins is widely seen as the leader in OTR truck engines, there making the most power, and they do it without EGR. I beleve there new engine makes 550HP and 1850ftlbs of TQ. And if I remember right, they are the #1 seller in OTR trucks. BUT my info might be outdated.
Posting Guru
Joined: Feb 2004
Posts: 1,397
Likes: 1
From: pound
They may be, but not because they are widely seen as the leader, CAT is widely seen as the leader...And that's all good, International sells in other areas, too, but the reason for geting into this market is to make the money that you can make, not to make a little bit and be ok with that...Profit is what businesses are all about, and Cummins dropped the ball by going with Dodge...I do agree that it's better than not being in the market at all, but not by much, they would have sold an exponential amount of engines (which is the business they are in) more if they had went with either of the other two...So they would have made a smarter move from a business standpoint, and evidently in a lot of truck owner's opinions, too...Start a thread and see how many people buy a Dodge just for the Cummins, and then see how many would have bought a Ford with a Cummins, or how many want a Cummins but don't have one because they won't buy a Dodge to get it...Then you'll start to see real-world relevance...
Last edited by FordLariat; Apr 10, 2005 at 07:45 PM.