Been in decades of the highest diesel fuel consumer, Cummins is projected that it would soar more than Tesla. Hydrogen is the key said Cummins.
But how much Cummins must struggle to win the market against the giant Tesla?
Diesel emits major sources of harmful pollutants. Tesla’s diesel-driven machines such as huge trains, trucks, and ships are the epitomes of diesel machine. The same fuel Cummins is consuming. Thomas Linebarger, Cummins’s chief executive leads green evolutionary shift from diesel to hydrogen and battery-fueled transportations.
Mr. Linebarger has set the groundwork by acquiring companies with greener means of transportations. He manages new division special for this ambition. However, there’s a slight uncertainty for Cummins to lead this change. In records, Cummins itself supplies more than a million heavy-duty engines to power buses, Dodge pickups, Kenworth semi trucks, Bradley M2 Army vehicles, Siemens trains, fishing trawlers, mining machines, and backup generators said Forbes. How come the highest emitter is in charge with environmental concern?
In his interview Mr. Linebarger is positive that Cummins can lead the shift. He is confident that nobody out there has the same quality of environmental concern as deep as Cummins. Moreover, Countries and states globally set a goal in less than a decade that they must shift from diesel to zero-emission transportations.
California for instance demands zero-emission models by 2024. The U.S. Environmental Protection Agency too evokes environment stricter requirements using 2027 projected models. It will surely cost huge spending for Cummins having this transition. But it does not seem to impact on Cummins’ market cap. According to analysts, Cummins cleaner diesel system has brought the company to get net income with 21% improvement.
Cummins urges that it will improve greener engines 25% by the end of the decade. Mr. Linebarger acts since 2018 to reach hydrogen-generation fuel by 2030s. It also joined venture with Chinese oil company Sinopec to produce renewable sources.
