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

BY ALAN BUNTING. Truck OEM sourcing strategies and M&A activity create ongoing uncertainty for independent HD engine suppliers

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 …

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