In the context of the US financial crisis beginning to spread to the real economy, which in turn led to the global economic downturn, how does Cummins see the market trend next year? The reporter interviewed Wang Hongjie, vice chairman and general manager of the engine division of Cummins (China) Investment Co., Ltd.
Reporter: How does Cummins judge the trend of China's heavy truck market next year?
Wang Hongjie: We believe that sales of heavy trucks in China will decline next year. If we review the sales situation of heavy trucks in the first half of the year, we can clearly see that the monthly sales increase exceeds the level of the same period in 2007, and the increase only declined in August. From the current situation, although various companies can complete this year's sales target, the increase shows a narrowing trend. We believe that in the first half of the year we have overdrawn the spending power in the second half of this year and the first quarter of 2009.
Reporter: Will China's heavy truck sales decline, and whether the global economic downturn will affect Cummins' earnings next year?
Wang Hongjie: The impact is mainly in North America, where sales of Dodge's pickup trucks and other factors have adversely affected us. However, Caterpillar has announced that it will withdraw from the US heavy truck market from 2010, which will increase our sales.
In China, our original goal was to exceed US$3 billion in sales in China by 2010 and to exceed US$5 billion by 2025. The current market trend is not good, but it is certain that Cummings sales must grow next year, but the growth rate will drop a lot.
Reporter: Where does Cummins's confidence come from?
Wang Hongjie: As long as technical regulations move forward, the output value of Cummins will increase. This is our source of confidence.
In 2009, Foton Cummins' 2.8L and 3.8L engines will be put into production, and Xi'an Cummins' 11L engine will be put into production. They will drive our sales. In addition to automotive engines, sales of our marine engines and construction machinery engines will also increase.
View related topics: Cummins - world-class engine manufacturer
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