Cummins Dismisses Reports On Manufacturing Moves

By Mike Brezonick12 November 2019

Like the unfounded news of Mark Twain’s passing, the reports about Cummins moving much of its international manufacturing activity to Mexico have apparently been greatly exaggerated.

According to reports on two websites, Cummins planned to shift parts of its businesses in Brazil, India, and China to Mexico as a result of new content requirements of the United States-Mexico-Canada Agreement (USMCA) and the ongoing tariffs placed on imports by the Trump administration.

The reports that appeared on websites in the U.S. and Mexico, said that compliance with the USMCA would require Cummins to move some of its operations to Mexico and the U.S. within seven years and quoted Cummins Vice President of Cummins Latin America Ignacio Garcia discussing the moves.

But Cummins spokesman Jon Mills was unequivocal in stating the Columbus, Ind.-headquartered company has not shifted production as the result of the USMCA treaty.

“In the USMCA agreement, there will be different (content) requirement levels,” Mills said. “However, it has not been implemented by Congress, so no, we have not begun doing any of those things.”

Mills said that like virtually all large companies, Cummins routinely reviewed its supply chain and manufacturing footprint “and looks for ways to mitigate costs of trading and tariffs.

“And we’re also looking at the USMCA to determine any changes we might need to make regarding that. However, I think the important thing to note about the USMCA is that we want to get that implemented as quickly as possible as we think it’s one of the most important trade agreements to our business.”

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