Re: Why not Cat engines?

From: JT McBride (James.McBride@GDEsystems.COM)
Date: Wed Nov 13 1996 - 12:31:32 EST


Kuk:
>P.S. Dodge gives up the Cummings contract to Ford in 2000.

Err. Not quite. When Ford bought Cummins, they signed a deal that they
wouldn't use Cummins engines in Ford products - an anti-trust thing.
That exclusion agreement expires in a year or two. What it will mean
is that Cummins will be able to supply Ford AND Dodge the same engines.
[It's not too likely GM would be interested, since they own Detroit Diesel]
It's not certain that Dodge would want to market a truck with the same
engine as a competitor, though the package is wildly popular. It is also
not beyond the realm of possibility that Ford would squelch outside sales,
although I doubt that would happen, as it would raise the hackles of lots
of anti-trust lawyers. I'm sure the Cummins operation would be quite
happy to simply expand capacity too.

Jim

       Crossing the Bridge to Serfdom, Resistance is Futile.

 



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