“OEM+CUMMINS” model is blooming all over the world

In February 2021, Cummins and Daimler Truck AG jointly announced that the two parties have signed a memorandum of understanding to establish a global strategic partnership for Chinese horsepower engine systems, and evaluate other cooperation opportunities. According to Chinabus.com, this is another strategic blockbuster after Cummins and Isuzu announced on February 5 that they signed a global mid-horsepower diesel powertrain and advanced engineering technology cooperation agreement. news.

OEM+CUMMINS”
　　 It is not difficult for industry insiders to find that the cooperation model established by Cummins and these two world-class commercial vehicle manufacturers is similar to the copy of the cooperation model between Cummins and Chinese OEMs. In China, Cummins has cooperated with Sinotruk Group, Foton Motor, Dongfeng Motor, Shaanxi Automobile Group, Guangxi Liugong, and Jianghuai Automobile through the “OEM+CUMMINS” method to establish Chongqing Cummins, Foton Cummins, Dongfeng Cummins, Xi’an Cummins, Cummins in Guangxi, Cummins in Anhui, and Cummins East Asia R&D center in Wuhan have been set up to tailor suitable clean power solutions for OEMs and users of passenger cars and trucks.

Dongfeng Cummins
　　 Speaking of the origins, Dongfeng Motor and Cummins had already achieved transoceanic cooperation as early as 1986, and signed the B-series engine license production agreement, which opened the prelude to the cooperation between the two parties. Ten years later, the two parties started in-depth cooperation and established Dongfeng Cummins Engine Co., Ltd. in June 1996. Compared with these Cummins joint ventures in China, Dongfeng Cummins has a much thicker base and more models.
　　 Xi’an Cummins
　　 Xi’an Cummins Engine Co., Ltd. is a Sino-US joint venture jointly established by Shaanxi Automobile Group and Cummins of the United States with a 50:50 equity stake. It was established on December 16, 2005. In a flash, it has been almost 16 years since the establishment of the two joint ventures. Xi’an Cummins has completely relied on imported parts and components at the initial stage of its establishment to increase its localization rate to more than 90% in 2016. Its product technology and comprehensive cost competitive advantages have continued to increase, and its production and sales scale has also increased year by year.
　　 Fukuda Cummins
　　 As the first Sino-foreign joint venture under Beiqi Foton Motor Co., Ltd., Beijing Foton Cummins Engine Co., Ltd. was established on March 26, 2008. In the more than ten years of cooperation between the two parties, the scope of cooperation between the two parties has been continuously expanded and the products have been continuously enriched. From the initial production of Cummins F series 2.8L and 3.8L inline four-cylinder high pressure direct injection light diesel engines, to the current Cummins F series 2.8L And 3.8-liter light, F-series 4.5-liter medium-duty and G-series 11-liter, 12-liter and X-series 12-liter heavy-duty diesel engines.
　　 Guangxi Cummins

Guangxi Cummins Industrial Power Co., Ltd. is the first company invested by Cummins in China focusing on the production of construction machinery engines. It was registered and established on June 27, 2012. Guangxi Cummins Industrial Power Co., Ltd. is an engine manufacturing enterprise established by Cummins and Guangxi Liugong Machinery Co., Ltd. at a 50:50 ratio. Prior to this, Liugong had not had its own construction machinery “heart”. After the joint venture with Cummins, Liugong finally had its own “heart”. The products produced by its joint venture company met the needs of Liugong and other construction machinery OEMs.
Anhui Cummins
In 2018, Cummins and Jianghuai signed a strategic cooperation, and Anhui Cummins Power Co., Ltd. was established. Anhui Cummins is committed to the upgrading and transformation of Hefei’s production base, with comprehensive upgrades in the areas of products, technology, manufacturing, quality, supply chain, management, and services. In order to provide more competitive and efficient power to the market, the joint venture company optimized the existing product line and introduced Cummins’ new B-series product platform. At the same time as emission regulations, continuous improvement in performance and efficiency is achieved.
Through the “OEM+CUMMINS” cooperation model, it is not difficult to find that with the development of China’s commercial vehicle and construction machinery industries, the sales of Cummins engines are steadily increasing, and the performance of key components has also reached new highs, achieving common growth with the industry and customers. In 2020, despite the dual challenges of the new crown pneumonia epidemic and the overall market environment, thanks to the growth of the core market and the success of Cummins customized product technology, the annual engine sales of Cummins China exceeded 670,000 units, an increase of 24% year-on-year , Setting a record for the company since entering the Chinese market in 1975. Facts have proved that after entering the Chinese market, Cummins did not establish a wholly-owned company, but chose to cooperate with OEMs, which is very wise. This has also made Cummins “China Model”. Now, this model is blooming all over the world.
The author believes that the success of Cummins’ “China Model” and its global replication is not only because of Cummins’ strong technical strength, but also the inevitable development of the industry in the new era.
For a long time, Cummins, as the world’s leading technology provider of power solutions, provides global clean power for trucks and buses in the highway market, and meets the quality requirements of reliable, durable, high-efficiency and low-consumption power products in the transportation field. In order to protect the atmospheric environment and reduce emission pollution, Cummins actively cooperates with partners, OEMs and fleet users, pays attention to the full life cycle cost, energy consumption and emissions, and actively explores the optimal use of green energy, relying on international leading technology research and development methods and long-term commitment Shengyu’s exquisite manufacturing technology gives Cummins light, medium and heavy road engines strong, reliable, economical and environmentally friendly. It is tailored for users of passenger cars, trucks, utility vehicles, light commercial vehicles and pickup trucks in different countries and regions in the world. Suitable clean power solutions.
The era calls for a win-win situation together
Cummins engine is not only well-known in the industry for its excellent reliability, durability and fuel economy, but also has played an active role in the implementation of increasingly stringent automobile emission regulations, and has made unremitting efforts to promote the technological progress and industrial upgrading of the industry.