COMMENT: Has heavy-duty vertical integration ‘run its course’?

In the matter of engine supply for North American heavy-duty truck and bus manufacturers, vertical integration ‘has largely run its course’, with Cummins – the last independent supplier in the segment – having ‘weathered the storm’. That, at least, is the view of Neil Frohnapple, an analyst from Ohio-based Longbow Research.

Frohnapple cites Cummins’ loss of business to in-house engine sourcing by Daimler (Freightliner and Western Star), Volvo (including Mack) and Paccar