The question “Who owns Cummins diesel engines?” is certainly one that has floated on the minds of many automobile owners.
It really isn’t hard to see why either, considering the various stakeholders involved in the Cummins engine company ownership, not to mention the several links to top automobile brands by Cummins.
But what are the facts about Cummins engine ownership? Let’s find out in this Cummins ownership guide!
- 1 Who Is the Owner of Cummins Diesel Engine?
- 2 Is There Insider Ownership of Cummins?
- 3 Has Cummins Always Been an Independent Corporation?
- 4 Where Are Cummins Diesel Engines Made?
- 5 What Is the Relationship Between Ford and Cummins?
- 6 What Vehicle Brands Commonly Use Cummins Diesel Engine?
- 7 Does Cummins Only Produce Diesel Engines?
- 8 What Are Cummins’ Other Services?
- 9 Conclusion
Who Is the Owner of Cummins Diesel Engine?
The owner of Cummins diesel engine is Cummins itself, which comes as no surprise to anyone! Cummins is an independent company with the name Cummins Inc. It is a public company that is listed on the New York Stock Exchange as “CMI.”
However, the majority of the company’s shares are owned by close to 900 institutional investors. By majority, we mean a whopping 83.9 percent of company shares, which is quite significant. But even more significant, as far as ownership goes, is that none of these shareholders own enough to have anything close to full ownership of the company. Don’t get it wrong though, these shareholders still have a say in some company policies, but ultimate ownership resides with Cummins Inc.
The fact that Cummins has so many institutional shareholders is a sign that the company is highly regarded in the investment community. The remaining shares are owned by the general public. By implication, the general public will have little say on major policies in the event these institutional shareholders vote in the same direction.
While Cummins Inc. owns the Cummins diesel engine, there are about 900 shareholders with 83.9 percent of company shares. Below are the top ten shareholders and how much they own.
- The Vanguard Group, Inc. has an 8.96 percent stake
- BlackRock Fund Advisors has a 5.22 percent stake
- SSgA Funds Management, Inc. has a 4.52 percent stake
- T. Rowe Price Associates, Inc. has a 3.72 percent stake
- Capital Research & Management Co. has a 2.32 percent stake
- Geode Capital Management LLC has a 2.04 percent stake
- Charles Schwab Investment Management has a 1.94 percent stake
- LSV Asset Management has a 1.48 percent stake
- First Trust Advisors LP has a 1.44 percent stake
- Columbia Management Investment Ad. has a 1.43 percent stake
Is There Insider Ownership of Cummins?
No, there is no significant insider ownership of Cummins. Before you ask, insider ownership is essentially when a senior officer or director of a company owns the company’s shares. The threshold is 10 percent. However, there is less than 1 percent insider ownership in Cummins.
That’s still quite a lot of money though, and the board members have consistently proved their commitment to the company. Also, it’s tricky to put an exact number on insider ownership, considering many senior officers may not buy in the company name.
Has Cummins Always Been an Independent Corporation?
Yes, Cummins has always been an independent corporation since its debut in 1919. Of course, there have been changes in the top brass of the company, as well as different shareholders with varying stakes in the company, but Cummins has always been owned and managed by Cummins Inc.
However, the company started small, and it even struggled to gain any significant market presence in its infancy. The turning point seems to be in 1933 when Model H, a Cummins engine used in the railway industry, became a hit. This propelled the company to the mainstream market, and investors soon came knocking on the door.
In the late 80s to early 90s, many imagined that the company would change ownership because of the major investors that Cummins was attracting, including the mega companies Ford and Dodge. Interestingly, the company ended up severing many of the ties it had to institutions that could potentially own it.
Where Are Cummins Diesel Engines Made?
Cummins diesel engines are made in different countries across different continents globally. As you would imagine, the diesel engines sold in the US are primarily made in the US, specifically in Columbus, Indiana. However, Mexico is another location where Cummins diesel engines are significantly produced for the North American market.
There is even an argument to be made that the production of Cummins diesel engines is more important in Mexico than in the United States. This stems from there being four production plants in just Mexico, across two states.
Perhaps surprisingly, many diesel engines used in the United States are starting to be made in China. This makes sense, though, as Cummins has a significant market for their engines in China. Generally, though, Cummins makes their engines where they will be marketed.
What Is the Relationship Between Ford and Cummins?
The relationship between Ford and Cummins is that Cummins supplies the engines for some Ford trucks. This is purely a business transaction, as with many other motor companies. Many have misconstrued that and insinuated that Ford are the owners of Cummins, but that’s not the case.
Ford has never owned Cummins. However, in the 90s, Ford purchased close to an 11 percent stake in Cummins. That does not translate to ownership, though, and Cummins effectively ended ties with Ford a few years later when they repurchased the shares Ford owned.
What Vehicle Brands Commonly Use Cummins Diesel Engine?
Vehicle brands that commonly use Cummins diesel engines include Dodge Rams, Ford, and Chevrolet. More specifically, the Dodge Ram 2500 and 3500 trucks.
Also, The Kenworth, Lonestar, and Peterbilt trucks frequently use Cummins diesel engines. Aside from diesel engines, these trucks also use other Cummins components and services.
Does Cummins Only Produce Diesel Engines?
No, Cummins does not only produce diesel engines. There are four other divisions that the company has specialized in, namely distribution, components, power systems, and new power. This corresponds to the company meeting various vehicle needs rather than solely meeting engine needs.
This may explain why aside from Cummins engine, terms like Cummins power and Cummins turbo are common among engineers and mechanics. You really can’t fault Cummins for their versatility too when you consider the quality their company has become known with because of their engines.
The most frequent customers for Cummins diesel engines are pickup diesel trucks, up to the point where Cummins is often associated with just trucks in some regions. However, the other parts Cummins produces are useful for chassis cabs and other motor vehicles.
What Are Cummins’ Other Services?
Cummins’ other services include Cummins emission control, component servicing, filtration products, fuel operations, electrical systems, etc. These services ensure that the company is a major player in the automobile parts industry. Cummins engineers also help in the design of the relevant services, as opposed to just manufacturing.
The variety of services offered by the company is also a key reason it is present to some degree in close to 200 countries. Simply, in countries where Cummins diesel engines aren’t very much needed, some other Cummins service will be useful.
– Consumer Opinions
There have been complaints about Cummins by consumers over the last few years. In fact, there is currently a legal case regarding the alleged concealment of safety risks by the company. Most of the issues consumers have had with the company have been linked to its filters and head gaskets.
The motor company that has had the most complaints is Dodge. There have been different reports from customers of the particulate filter of their Dodge Ram Cummins engine developing faults. Chrysler also has problems with fuel injection pumps.
Cummins diesel engine is considered one of the most used engine brands in pickup trucks and cabs.
However, many people are confused about its ownership, so here are the key points about its ownership:
- The answer to the query “Who owns Cummins diesel engines?” is Cummins itself.
- There are close to 900 institutional stakeholders that have shares to the company.
- Cummins is and has always been independently owned, despite major companies like Ford owning substantial shares in the 90s.
- Aside from diesel engines, Cummins also produces other vehicle components and offers different services ranging from filtration to power generation.
- Cummins diesel engines are produced across different countries of the world, with the United States, Mexico, and China being chief producers.
Next time you see a Dodge Ram or a Ford pickup truck, know there’s a decent probability it has a Cummins diesel engine. Despite the quality and integrity of these engines, though, consumers have identified a few problems with them.
- How Fast Are Harley Davidson Motorcycles on the Road? - May 29, 2023
- How Much Does a 30 Foot Camper Weigh With and Without Cargo? - May 29, 2023
- How Many Axles Does a Car Have and What Are the Types? - May 29, 2023