Will your next truck with a Cummins turbo diesel engine be more expensive? Cummins is a U.S.-based engine manufacturer that produces many different diesel engines in Indiana, but the company finds itself amidst an international tariff and trade war.
There are more details here in an interview with a Cummins vice president.
As the price of raw materials is going up, Cummins and many other companies are faced with a tough decision related to this: pass on the price increase to the customers or swallow the increased cost and risk profitability. Cummins vice president, Tony Satterthwaite, said the following in a recent interview:
“We will be showing up at their [customer] door in the near future with a price increase related to the tariff. And that will have impacts as to whether or not that customer will possibly say, I’m not willing to pay that; I want to go to a different supplier.”
Cummins diesel engines are currently used in consumer trucks such as the Ram HD and Nissan Titan XD. Naturally, Cummins engine business goes beyond consumer pickup trucks. Semi trucks, boats, stationary generators, and many more applications use these engines.
It’s not clear whether this cost increase will show up on the sticker price of a new Ram or Nissan truck. We will stay on top of this story and provide updates.