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Who owns Cummins, it's a shocker

  
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Who owns Cummins, it's a shocker

 
White_Lightning White_Lightning
Guru | Posts: 941 | Joined: 07/09
Posted: 03/08/11
01:58 PM

With the recent springback of the Dodge Losing Cummins in 2011 thread, I found this, it dates back to 2003. To any nay-sayers, Google is a wonderful tool.


(1) Isuzu owned Subaru, and sold out to Fuji Heavy Industries, which was then jointly acquired by British Leyland and Ford.

(2) BL & Ford then spun off Fuji/Subaru into an independent company. Big mistake. Ford bought BL, and owned Isuzu outright. Big mistake.

(3) Isuzu entered into a joint development partnership with Navistar International. Stock interests were traded. Eventually, one of the projects would be a 7.3L V-8 light-duty diesel. Guess who picked that one up for use in its pickup trucks?

(4) Navistar also had entered into a joint development partnership with Caterpillar. One of the projects was a direct injection system that would be picked up by -- Ford. And Isuzu mediums.

(5) Caterpillar owned a large chunk of Bosch. GM owned another big chunk. And so did a third major player -- Daimler Benz. Bosch was the primary developer of Caterpillar's direct injection system. But GM forced Caterpillar to turn over its share of Bosch, and then forced Bosch to abandon direct injection in favor of developing an "improved" generation rotary injection pumps. The initial designs for those pumps had been brought to GM by former Isuzu engineers working for Ford.

(6) What did Caterpillar receive in return for giving GM its stock in Bosch? GM's stock in Cummins. Ford then sold its small share of Cummins stock because of antitrust regulations in the U.S. Caterpillar, on the other hand, avoided antitrust problems by a joint incorporation agreement with Cummins under a Brazilian operation named Inquardo, Ltd.

(7) Eventually almost all Cummins manufacturing and design were moved over to that part of the "house". However, that move proved so efficient and profitable that Cummins began to eat into significant markets for Caterpillar, so Caterpillar merged its manufacturing and design base with Cummins in Brazil, leaving skeleton operations only in places like Peoria, Illinois. Cummins management largely pushed out Caterpillar management after several years.

( With me so far? Caterpillar owns Cummins, but Cummins has effectively "eaten" Caterpillar. In Brazil. Here, they're separate, of course, but it's only the purposes of adhering to American commercial law. But wait. There's more.

(9) Ford had some disasterous capitalization-and-flow problems after the overseas buying spree of the early nineties, during which it acquired British Leyland, Isuzu, Fuji, part of Fiat, and parts of other companies. Ford was forced to sell Isuzu to maintain cash flow beyond the U.S. Who did they sell Isuzu to? Navistar International. Along with certain manufacturing and sourcing arrangements. Navistar hoped to go global again, as in the grand old days of International Harvester.

(10) But Navistar couldn't hold on to Isuzu either, what with a $2 billion dollar loss in 1995, and eventually sold its controlling interest in the company to Daimler Benz.

(11) Isuzu was having its own problems, since its global market share in light and medium diesels was rapidly shrinking. The cause of the problem was Cummins, which, after swallowing Caterpillar - in Brazil - had also acquired NGT, Tapei Technologies, Allison Canada, and Nansen-Renault, all in hostile takeovers, all manufacturers of diesel technologies outside of the U.S. So, Cummins had effectively cornered the controlling share of the global market outside of North America and Western Europe. (Why do you think the splashgate at their website is so heavily global?)

(12) After nine months of negotiation, Cummins and its subsidiary, Allison Canada, entered into a joint development arrangement with Isuzu, owned by Daimler, and with the surviving U.S. corporation, Allison, which was at that point partly owned by GM. Cummins, however, dominated the partnership, and eventually managed to assume Daimler's and GM's interests in Isuzu and and Allison.

(13) In the case of Isuzu, Cummins has an equal partnership with Daimler, which, of course, has also acquired Chrysler Corporation. That's why, when Ford offered Cummins a billion-dollar package to manfacture medium and light truck diesels for its vehicles in 2001, Cummins said no. Again, for antitrust reasons, a public holding company was set up to handle Isuzu as a separate corporate entity. The name of the company is Benz Transporation Technologies, of San Paulo, Brazil. BTT also is a major owner of the Benz division of Daimler Chrysler, which manufacturers most of the diesel engines in Europe. In the case of Allison, Cummins controls it through a series of holding companies ending with Inquardo, Ltd., the orginal Caterpillar-Cummins creation in Brazil. Cummins also controls a fair-size block of stock in GM, through the ownership of a cartel of South Korean and Thai banks and investment groups.

(14) Navistar has continued its free-fall in spite of its partnership with Ford in the light-duty diesel area. A while ago, after the implications of labor troubles, a rise in basic resource costs, and the disasterous introduction of the 6.0L PSD had become clear, Navistar's financial arrangements with Citibank and Manufacturers B&T collapsed. Both banks arranged to float the company infrastructural loans if it would agree to a merger with -- are you ready for this? -- Inquardo, Ltd. As of last Thursday, Cummins owns 67% of Navistar through Inquardo.

Right now, Cummins makes all diesels in all pickup trucks sold in the United States. Cummins makes 73% of all diesels in all trucks sold in the world. The board of directors at Inquardo -- which isn't listed on any stock exchange -- includes 9 Cummins execs, 2 Caterpillar execs, and one Wells Fargo Bank exec. The CEO and CFO are also Cummins vice presidents. And there are Cummins execs on the boards of Daimler Chrysler, General Motors, Toyota, and Honda America. Ford, the holdout, has not been doing very well.

So it isn't a question of who owns Cummins. It's a question of who Cummins owns, and who's next. Could be Ford. Could be DC. Could be both. Ford Viper, anyone? Mercedes Mustang with a 6.0L Shelby Diesel and a Holset twin turbo?

And some have claimed that the Navistar/Ford 6.0L is Cummins' revenge for the Bosch VP44"  
Logan
1995 12 valve Cummins 6.0L, 5 speed, 4x4, 600hp Valair Clutch. Air Dog 4GHD lift pump, no fuel plate, 2095 rack plug, 024 DV's, pump benched at 440cc, SDX 5x.014 injectors, Hamilton 181/210 cam and HD pushrods, Stage 2 Port job, 5 angle valve job, 60lb valve springs, ARP studs, O-ringed head, .020" over head gasket, coated pistons, balanced bottom end, Fluidampr, PDI exhaust manifold, homemade intake manifold, 63/68/0.80 over 80/92/1.32 compound turbos.

01 24 valve 01 24 valve
Enthusiast | Posts: 317 | Joined: 11/09
Posted: 03/08/11
04:15 PM

yeah cummins will live on strong and the best forever thank you clessie lyle cummins for making one hell of an engine  
2001 dodge ram 2500 ext cab short box 5 speed 4 inch down pipe into 5 inch strait pipe exhaust into 6 inch chrome dual aussie stacks, 90hp injectors with 200hp tips, quadzilla adrenaline tuner with monitor , ,  bd lift pump, AFE stage 2 cold air intake, ARP head studs, ATS three piece exhaust manifold with t4 flange,Garrett ta45 turbo southbend dual disc 750hp clutch with 1 3/8" input shaft

kingtoid kingtoid
User | Posts: 107 | Joined: 09/10
Posted: 03/08/11
06:06 PM

That was amazing.  My mind has been just a little bit more blown.  This should be standard reading for students of business.  Great story.  

01 24 valve 01 24 valve
Enthusiast | Posts: 317 | Joined: 11/09
Posted: 03/09/11
04:30 PM

i did a whole report on the cummins engine last year for an assignment at school i had everything in there rite from day one of the cummins engine up until now i even mentioned quite a bit in there how clessie lyle cummins invented the jake brake but gave the patent to a jacobs company the whole thing was about 10 pages long  
2001 dodge ram 2500 ext cab short box 5 speed 4 inch down pipe into 5 inch strait pipe exhaust into 6 inch chrome dual aussie stacks, 90hp injectors with 200hp tips, quadzilla adrenaline tuner with monitor , ,  bd lift pump, AFE stage 2 cold air intake, ARP head studs, ATS three piece exhaust manifold with t4 flange,Garrett ta45 turbo southbend dual disc 750hp clutch with 1 3/8" input shaft

444getsitdone 444getsitdone
Enthusiast | Posts: 455 | Joined: 12/10
Posted: 03/10/11
09:48 AM

We are very proud! 12 valve Wink Grin  
.
NEVER Been "Found On Road Dead"
E99 Ford F350 CC, LB, 2wd, 332,000 miles 20 MPG, AIS Air intake, 203* tstat from Dieselsite.
09 Jetta TDI 111,000 miles 44 MPG, no mods.

To be prepared for war is one of the most effective means of preserving the peace.
-George Washington.

kproctor kproctor
New User | Posts: 38 | Joined: 03/11
Posted: 06/01/11
06:31 PM

great post!!!! mind blowing on all the deals that have gone down... and i still hear people say that cummins isnt anything and is going to go under in the next 5 years... gonna print this one out for sure!!!!  
1999 2500 cummins 53 series block (cracked) rebuilding it not sure what all is gonna be done yet but want to put up some big numbers before i decide to chip it out.

01 24 valve 01 24 valve
Enthusiast | Posts: 317 | Joined: 11/09
Posted: 06/02/11
02:45 PM

the day cummins goes under is the day hell freezes over and if they were to its cuz there engines last so dam long no one needs new ones haha  
2001 dodge ram 2500 ext cab short box 5 speed 4 inch down pipe into 5 inch strait pipe exhaust into 6 inch chrome dual aussie stacks, 90hp injectors with 200hp tips, quadzilla adrenaline tuner with monitor , ,  bd lift pump, AFE stage 2 cold air intake, ARP head studs, ATS three piece exhaust manifold with t4 flange,Garrett ta45 turbo southbend dual disc 750hp clutch with 1 3/8" input shaft

444getsitdone 444getsitdone
Enthusiast | Posts: 455 | Joined: 12/10
Posted: 06/03/11
03:24 PM

Cummins will go before Hell does, thats for sure!  
.
NEVER Been "Found On Road Dead"
E99 Ford F350 CC, LB, 2wd, 332,000 miles 20 MPG, AIS Air intake, 203* tstat from Dieselsite.
09 Jetta TDI 111,000 miles 44 MPG, no mods.

To be prepared for war is one of the most effective means of preserving the peace.
-George Washington.

01 24 valve 01 24 valve
Enthusiast | Posts: 317 | Joined: 11/09
Posted: 06/03/11
04:38 PM

its figure of speech lol meaning cummins aint goin anywhere  
2001 dodge ram 2500 ext cab short box 5 speed 4 inch down pipe into 5 inch strait pipe exhaust into 6 inch chrome dual aussie stacks, 90hp injectors with 200hp tips, quadzilla adrenaline tuner with monitor , ,  bd lift pump, AFE stage 2 cold air intake, ARP head studs, ATS three piece exhaust manifold with t4 flange,Garrett ta45 turbo southbend dual disc 750hp clutch with 1 3/8" input shaft

01 24 valve 01 24 valve
Enthusiast | Posts: 317 | Joined: 11/09
Posted: 06/03/11
04:39 PM

its a figure of speech lol  
2001 dodge ram 2500 ext cab short box 5 speed 4 inch down pipe into 5 inch strait pipe exhaust into 6 inch chrome dual aussie stacks, 90hp injectors with 200hp tips, quadzilla adrenaline tuner with monitor , ,  bd lift pump, AFE stage 2 cold air intake, ARP head studs, ATS three piece exhaust manifold with t4 flange,Garrett ta45 turbo southbend dual disc 750hp clutch with 1 3/8" input shaft

444getsitdone 444getsitdone
Enthusiast | Posts: 455 | Joined: 12/10
Posted: 06/05/11
01:23 PM

just playing with you 12 Valve LOL Grin  Grin  
.
NEVER Been "Found On Road Dead"
E99 Ford F350 CC, LB, 2wd, 332,000 miles 20 MPG, AIS Air intake, 203* tstat from Dieselsite.
09 Jetta TDI 111,000 miles 44 MPG, no mods.

To be prepared for war is one of the most effective means of preserving the peace.
-George Washington.

01 24 valve 01 24 valve
Enthusiast | Posts: 317 | Joined: 11/09
Posted: 06/05/11
06:45 PM

yeah i know lol gotta have some fun sometimes rite well i guess all us diesel guys were always playing when a trucks got 500 ft lbs of torque and up theres lots of fun to be had  
2001 dodge ram 2500 ext cab short box 5 speed 4 inch down pipe into 5 inch strait pipe exhaust into 6 inch chrome dual aussie stacks, 90hp injectors with 200hp tips, quadzilla adrenaline tuner with monitor , ,  bd lift pump, AFE stage 2 cold air intake, ARP head studs, ATS three piece exhaust manifold with t4 flange,Garrett ta45 turbo southbend dual disc 750hp clutch with 1 3/8" input shaft

444getsitdone 444getsitdone
Enthusiast | Posts: 455 | Joined: 12/10
Posted: 06/09/11
03:33 PM

^^^AMEN to that!!!!  
.
NEVER Been "Found On Road Dead"
E99 Ford F350 CC, LB, 2wd, 332,000 miles 20 MPG, AIS Air intake, 203* tstat from Dieselsite.
09 Jetta TDI 111,000 miles 44 MPG, no mods.

To be prepared for war is one of the most effective means of preserving the peace.
-George Washington.

01 24 valve 01 24 valve
Enthusiast | Posts: 317 | Joined: 11/09
Posted: 10/14/11
11:04 AM

c  
2001 dodge ram 2500 ext cab short box 5 speed 4 inch down pipe into 5 inch strait pipe exhaust into 6 inch chrome dual aussie stacks, 90hp injectors with 200hp tips, quadzilla adrenaline tuner with monitor , ,  bd lift pump, AFE stage 2 cold air intake, ARP head studs, ATS three piece exhaust manifold with t4 flange,Garrett ta45 turbo southbend dual disc 750hp clutch with 1 3/8" input shaft