Cummins establishes central European institution for integrated management

A few days ago, Cummins announced that it will reorganize the distribution division of the European region and establish the distribution division of the Greater Europe Region. It will divide the original four wholly-owned distribution organizations that are geographically spread across 16 countries, namely Cummins UK and Cummins. The Mediterranean region, Cummins Scandinavia/Bhilu, and Cummins Central/Eastern Europe combine to form a unified management.

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The restructuring plan will begin in January 2011 and continue until the end of 2012. There will be 21 major initiatives in succession, each of which will help Cummins improve its performance in the broader European market. This reorganization plan stems from the result of a Cummins Strategic Business Review (abbreviated as LIFT). The purpose is to adjust and formulate strategic goals that are consistent with market demand, adapt to market trends, and meet challenges. This plan has extensively adopted the opinions and suggestions of Cummins customers, employees, market executives and other stakeholders. It has decided to concentrate its efforts on harmonizing resources, establishing a large distribution management agency in the European region, coordinating and managing European operations, and improving management efficiency. Cost, improve customer support and service capabilities throughout the European region, increase customer satisfaction, and enhance Cummins’s competitiveness in the European market.

Ron Somerville, general manager of Cummins Greater Europe, said that the establishment of distribution agencies in Greater Europe is an important measure for Cummins to strengthen the construction of its distribution service network. Through the standardization of business processes and unified steps, it breaks the regional boundaries and truly realizes “service without borders”. Customers provide more professional and thoughtful services; through the integration of Cummins human, material and customer resources, improve service capabilities, meet customer needs, exceed customer expectations, become the customer's first choice.

Cummins in China

The history of Cummings and China dates back more than half a century to the 1940s. On March 11, 1941, the President of the United States, Franklin Roosevelt, signed the Lease Act and provided wartime assistance to 38 countries, including China. The "Lending Act" includes military defense patrol boats equipped with Cummins engines and military trucks.

At the end of 1944, a Chongqing company sent a letter to Cummins Corp. seeking to establish commercial ties and conduct localized production of Cummins engines in China. Erwin Miller, general manager of Cummins Engine Co., expressed great interest in this letter. It is hoped that Cummins will build a factory in China after the Sino-Japanese War. For reasons known to all, Mr. Miller's idea can only wait until the 1970s 30 years later. With the gradual relaxation of Sino-U.S. relations, it is expected to become a reality.

Cummins invests US$310 million in China. As the largest foreign investor in China’s diesel industry, Cummins’ business relationship with China began in 1975. Mr Cummins’s chairman, Irvine Miller, visited Beijing for the first time. One of the earliest US entrepreneurs to seek commercial cooperation in China. When China and the United States established diplomatic relations in 1979, China’s opening to the outside world began. The first Cummins China office was established in Beijing.

Cummins was one of the earliest western diesel engine companies to produce engines in China. In 1981, Cummins started to produce engines in the Chongqing engine plant. In 1995, Cummins' first Chinese joint venture engine factory was established. So far, Cummins has a total of 26 institutions in China, including 14 wholly-owned and joint ventures, and employs more than 7,000 employees. They produce engines, generator sets, alternators, filtration systems, turbocharger systems, and exhaust systems. Post-processing and fuel systems and other products have a service network of 12 regional service centers and more than 300 authorized dealers.

Cummins has long established a strategic alliance with large Chinese companies to achieve common development. As the earliest foreign-invested diesel engine company to come to China for local production, Cummins has established four engine joint venture plants with leading companies of commercial vehicles in China including Dongfeng Motor, Shaanxi Automobile Group and Beiqi Foton for more than 30 years. Cummins 18 Of the 11 engine series, 11 have been produced locally in China.

Cummins was the first foreign-owned diesel engine company to establish an R&D center in China. In August 2006, the engine technology R&D center set up by Cummins in cooperation with Dongfeng Corporation was officially opened in Wuhan, Hubei Province.

In 2009, Cummins sold more than US$1.7 billion in China, and China has become Cummins’ largest and fastest growing overseas market.

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