Profitable by 2020

 

The development of the Endurant transmission, the first product from the joint venture company formed by Cummins and Eaton, is moving the operation toward profitability according to Cummins president and chief operating office, Richard Freeland.

The joint venture that was developed in 2017 is expected to be profitable by 2020 and current losses for Eaton Cummins Automated Transmission Technologies are expected to be halved in 2019, with a break-even point to be reached the following year.

“The combined powertrain product is doing terrific as we introduced the new product, and more importantly, as we’ve done the integration work between the engine and the transmission,” says Freedland.

The first product to emerge through the joint venture was the 12-speed automated Endurant transmission but, it is not the only partnership playing a role in future business plans.

Cummins, which recently acquired Efficient Drivetrains Inc. as part of its electrification strategy for commercial vehicles, is also forming a joint venture with Chinese JAC Motors following Navistar’s exit from that business.

Tom Linebarger, Cummins chairman and chief executive officer, says the company will benefit from JAC’s strong exporter status in overseas markets that follow China 6 emissions standards. Cummins’ market share in the region is expected to grow significantly – perhaps double – in five years.