Cummins Inc. 2007 Sustainability Report

“We rely
on our core
values to guide
us through
difficult issues,
including the
daily challenges
of conducting
business in a
complex, global
marketplace.”
Inness Liu
customers. These partnerships provide us
with a knowledge and understanding of our
customers’ technology and business needs
and enable us to develop products and
services that better meet their requirements
at lower costs.
For example, we have both customer and
supplier arrangements with Komatsu, Ltd.,
including manufacturing joint ventures and a
product development joint venture that has
led to the development of several engines.
We are also the exclusive supplier of
engines for Komatsu mining equipment.
In addition, we have been the exclusive
diesel engine supplier to Chrysler for its
Dodge Ram truck since 1988. We have
long-term agreements with Volvo and
International Truck and Engine Corporation
for the supply of heavy-duty truck engines
and with PACCAR for the supply of both
heavy-duty and medium-duty engines.
These agreements afford us long-term price
stability and eliminate certain dealer and
end-user discounts, while offering closer
integration on product development.
Global Presence. We have a strong
global presence including a worldwide
distribution system, manufacturing and
engineering facilities and a network of global
supply sources. Our worldwide presence
has enabled us to take advantage of growth
opportunities in international markets, with
sales outside the U.S. growing from 43
percent of total consolidated net sales in
2000 to 54 percent of total consolidated
net sales in 2007.
20 Cummins Inc. 2007 Sustainability Report
Leading Technology. We have an
established reputation for delivering highquality,
technologically advanced products.
We continuously work with customers
to develop new products to improve the
performance of their vehicles, equipment
or systems at competitive cost levels. We
are a leader in developing technologies
to reduce diesel engine emissions, a key
concern of our customers and regulators
around the world.
We were able to meet the EPA’s 2007
heavy-duty on-highway emissions
standards that went into effect on
January 1, 2007, and we announced
in January 2007 that our Dodge Ram
6.7-liter Turbo Diesel engine meets the
EPA’s 2010 emissions standards a full
three years ahead of the requirements.
We have also developed low-emission,
high-performance natural gas engines
as an alternative-fuel option for the
on-highway, industrial and power
generation markets. Our technology
leadership in filtration, exhaust
aftertreatment, air handling and fuel
systems allows us to develop integrated
product solutions for the on-highway, offhighway
and power generation markets.