Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.dmtmag.com/i/846064
6 commercial carrier journal | july 2017 Electrifying news from Cummins Engine maker enters electric power race with promise for P&D, urban transportation markets BY JEFF CRISSEY I n an effort to diversify its commercial transporta- tion product portfolio beyond diesel- and natural gas-powered engines, Cummins announced it will introduce a fully electrified powertrain solution for the ur- ban transportation market by 2019 and a range-extended electrified powertrain by 2020. The company said electric powertrain solutions for pickup- and-delivery and material handling applications would follow, but it did not announce near-term plans for such systems in the North American commercial trucking industry, citing the familiar battery size and weight issues associated with long- range applications. "Longer term, electrification will come to all of our markets," said Julie Furber, executive director of Cummins' Electrification Business Development, a division formed earlier this year. "We are looking into mild hybridization to gain efficiency, but fully electrified powertrains for long-haul vehicles is a ways out into the future." The timing of the Cummins announcement coincides with the precipitous price drop of batteries and electronic com- ponents required to make electrified powertrain technology a conceivably viable alternative to diesel power. Customer demand for electric power also is rising in urban areas where noise and emissions regulations will spur subsidies for early adopters. "We will be the leader in electrified powertrains for urban transportation," said Tom Linebarger, Cummins chair- man and chief executive officer. Cummins' new endeavor also comes on the heels of Nikola Motor Co.'s Nikola One hydrogen-electric hybrid truck an- nounced last year and Elon Musk's recent promise to intro- duce the Tesla Semi electric truck later this summer. Cummins' net engine sales (including all on-highway engines, industrial engines and stationary power) compared to overall company sales dropped from 62.6 percent in 2011 to 54.7 percent in 2015. Diesel engines are and will continue to be the backbone of Cummins' business, but Linebarger notes the announcement marks a "piv- otal time for the company" as it enters the electric powertrain space. "We are not just a diesel engine company, we are a power technology company," he said. "We believe we know the applications we serve, on- and off-highway, better than anyone else. As new technologies come in, we can bring them to market in the right way for our customers." While last month's teleconference was light on specifics, if nothing else the announcement demonstrates Cummins' continued ability to adapt and react to market changes. Cummins still enjoys a loyal customer base in its commercial trucking diesel engine business and retains the engine market share lead for Class 8 trucks at 35.4 percent in 2016, according to WardsAuto, but that space is becoming increasingly tight as truck OEMs experience higher take rates of their own integrated powertrains with proprietary engine and automated manual trans- mission technologies. Not resting on its laurels, Cummins and Eaton strength- ened their ongoing SmartAdvantage integrated pow- ertrain relationship in April with the formation of Eaton Cummins Automated Transmission Technologies, a joint venture with a $600 million investment from Cummins to expand the companies' global footprints. Cummins also launched its own remote diagnostics capabilities to keep pace with similar offerings on OEM-proprietary engines. Just as it disrupted the trucking industry in the early part of the 20th century with the introduction of diesel engines in a gasoline-only world, Cummins' electric powertrain initiative demonstrates another example of its willingness and ability to explore new technologies and opportunities before they are mainstream. UPFRONT JEFF CRISSEY is Editor of Commercial Carrier Journal. E-mail jcrissey@ccjmagazine.com. n Total Cummins engine segment sales vs. total company sales n Cummins heavy-duty on-highway engine sales vs. total company sales