Global Power Leader Cummins Sees Growth Opportunities in Decarbonization
At a meeting this week with analysts and shareholders, the leadership team at Cummins Inc. said decarbonization is a growth opportunity for the company.
The team said the global power leader is well positioned as one of the few companies capable of providing integrated solutions across a range of combustion and electrified powertrains, so customers can choose what works best for them.
"The decarbonization of our economy is critical to our way of life and our industry will play a key role in that effort," said Tom Linebarger, Chairman and CEO of Cummins. "Fortunately, decarbonization is also a growth opportunity for Cummins. We are confident in our ability to play a leading role in bringing lower carbon technologies to commercial vehicle and industrial markets globally and to generate strong returns, due to the capabilities Cummins has built over many years."
The company is uniquely positioned to lead in the transition to zero emissions, through Cummins' range of advanced combustion powertrains and zero-carbon solutions, said Jennifer Rumsey, the company's President and Chief Operating Officer.
"Our increasingly broad portfolio of technologies, enhanced by our recently announced plans to acquire Meritor and Jacobs Vehicle Systems, coupled with our industry leading scale and longstanding global relationships make us a compelling powertrain partner for OEMs (original equipment manufacturers) wherever they operate," Rumsey said.
Cummins is investing in differentiated technologies that will meet diverse customer needs and enable business growth as decarbonization occurs. These include market-leading, fuel-agnostic engine platforms and key components for powertrain performance and emissions reduction.
The company powers a broad range of commercial markets, from on-highway freight transportation to marine, rail, agriculture, and construction. It also manufactures generators providing critical backup power to plants, hospitals, data centers and more.
Amy Davis, Vice President and President New Power, detailed how the company is already preparing for a fully zero emissions future, with investments in a broad array of technologies from electrolyzers critical to producing green hydrogen to mobility technologies such as battery electric and fuel cell electric systems.
"Our New Power business (segment) is positioned to capture significant growth both in our core markets, as they transition to zero carbon solutions, and in new spaces presented by the global hydrogen economy," Davis said. "We will leverage the key capabilities Cummins brings such as deep customer relationships, application knowledge, and a vast sales and service network while also demonstrating the agility of a startup mindset."
