Caterpillar's 'no buy' prediction off mark, Cummins says

| Friday, July 19, 2002

Cummins Inc., said a "no-buy" pattern predicted for the fourth quarter this year by diesel engine competitor Caterpillar Inc. is an unrealistic claim amid obvious signs that the U.S. economy is recovering, Stark's News Service Interactive reports.

"Cummins believes that it is unrealistic to expect a 'no-buy' in the fourth quarter. In the macro-economy, freight is up, manufacturing is up, and the economy as a whole is pulling out of recession.

"Businesses will be moving freight and trucking companies will need to buy equipment to satisfy their customers. We have a certified and compliant engine ready for the fourth quarter that our customers are going to love. The performance and durability is there, and it will continue to have industry-leading fuel economy," a Cummins spokesman said.

Current artificial diesel engine buying patterns in North America could replicate similar patterns that have previously occurred within the market prior to new emissions standards, Cummins said.

"History has shown that 'pre-buys' before emissions hurdles tend to be more exaggerated on the front end than the reality proves to be. We believe the 'pre-buy' that people are talking about now is exaggerated and will not change long-term buying patterns," the Cummins spokesman was quoted as saying.

Meanwhile, Caterpillar earlier announced it sued Cummins challenging EPA's certification of Cummins' ISX engine, claiming Cummins' engines rely on devices that bypass emissions-reduction technology.

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