Caterpillar and Cummins adopt different approaches
THE way Caterpillar and Cummins are gaining footholds in unfamiliar markets or technologies illustrate the differences of approach of two engineering giants, reports the Financial Times.
In the past decade, Cummins has formulated a strategy based on joint ventures with outside groups. For example it is building a new family of engines for power generation with Wärtsilä of Finland and runs an engine factory in the USA jointly with Case, the tractor and construction machines supplier.
Meanwhile, Caterpillar has taken a determinedly go-it-alone stance. It prefers to stay in complete control of its new engine ventures. In the past two years it has spent more than $2 billion buying engine companies worldwide.
According to world statistics, Cummins is the worlds largest maker of large diesels. Caterpillar is in third position with Navistar, the US truckmaker, in between.
- Financial Times 02/07/98 page 18