A solution for everything, no matter what the engine transition brings
Interview with Edwin van Plaggenhoef, Director Central & Northern Europe at Cummins Deutschland GmbH
The development, manufacturing, and maintenance of diesel and gas engines for a wide range of applications—from shipbuilding to data centers—has made the American Cummins corporation a leading global innovator in the engines and power systems sector. In an interview with Wirtschaftsforum, Edwin van Plaggenhoef, Director Central & Northern Europe at Cummins Deutschland GmbH, revealed which developments the company is currently focusing on extensively—both in diesel engines and beyond.
Wirtschaftsforum: Mr. van Plaggenhoef, in his home country, the USA, Cummins has been a 'Household-Name' for many decades; this is not necessarily the case in Europe!
Edwin van Plaggenhoef: That is true – and our team is working feverishly to change that. However, our products often work behind the scenes and are usually not directly visible to end consumers – because the global commitment of our company extends to a wide variety of different products, components, and solutions in the fields of engines, generators, and power supply systems. Our company is structured into five business segments worldwide – Components, Engine, Distribution, Power Systems, and Accelera by Cummins –, in which we engage with profound expertise in individual markets.
Wirtschaftsforum: You are responsible for the After Market area in the Business Unit Distribution in Central and Northern Europe - what are you currently particularly busy with in your day-to-day business?
Edwin van Plaggenhoef: We continue to be heavily engaged in the production of diesel engines, which we are constantly developing further in all fields of application. Our smaller series are often used in the off-highway area. Another strong segment is in Power Generation, for instance in data centers, where our engines are used as a standby solution to ensure fail-safe operation should the power supply of the data center fail. Our diesel engines are also still in high demand in shipping and road transport, such as in buses.
Wirtschaftsforum: Is this a trend that will continue given the increasing electrification and changes in propulsion technology?
Edwin van Plaggenhoef: Cummins has experienced very strong growth in all of these segments over the last two years. We expect that by 2030 there will still be about the same amount of diesel engines needed in the market as today. From our perspective, the question is rather which engine manufacturers will invest in the further development of this technology given the strong technological and economic changes, as well as stricter regulatory conditions – such as the Euro-7 standard. One must not overlook that all relevant market participants are currently facing great uncertainty – because it is not foreseeable for anyone which technology form will be leading in the medium term. It is only certain that electric drives and batteries will unfortunately not be the right solution for all applications. Thus, the transformation will not proceed as ‘simply’ as a full electrification of all propulsion and energy generation sectors. For this very reason, Cummins holds a solution ready for all technologies and will significantly expand its product portfolios in this context.
Wirtschaftsforum: What new technologies are you specifically working on?
Edwin van Plaggenhoef: We are working, among other things, on so-called Fuel Cells, which are essentially hydrogen combustion engines, as well as electrolyzers for generating hydrogen. Further development of battery technology is also a major focus for us. To pursue these innovations even more consistently, Cummins launched its own business unit, Accelera, a year ago, in which all our related activities have been purposefully consolidated. In addition, we acquired the company Meritor two years ago, which has also been a global supplier of various automotive components in the market for many decades, and has particularly made a name for itself in brakes, axles, and corresponding safety systems. These competencies also represent an important enrichment for our business fields.
Wirtschaftsforum: From your perspective, what are the key success factors for your products?
Edwin van Plaggenhoef: First and foremost is our absolute and reliable quality promise, for which Cummins has been known for over a century. Furthermore, we support our customers globally without limits, which is almost unique in our segment. Many of our competitors, for example, can only offer service coverage across Europe. However, since most of our customers are active globally, our worldwide commitment is an important distinguishing feature.
Wirtschaftsforum: What distinguishes Cummins as a company at the moment?
Edwin van Plaggenhoef: I have been with Cummins for 27 years in various positions - so personally, I probably lack firsthand comparison opportunities. Nevertheless, I am convinced that our commitment beyond the actual corporate activity is an important key to our success. Of course, at the end of the day, the sales figures must be convincing and a profitable operational result must be achieved - but that is not enough in the long run.
Wirtschaftsforum: What characterizes the corporate culture at Cummins in everyday life?
Edwin van Plaggenhoef: We want all our employees to be able to continuously develop themselves - professionally and personally. We also want to enable them to make a significant contribution in the communities where we operate our global offices. That's why we support local charitable organizations - at our location near Frankfurt, for example, the Tafel association - not only through donations but also by allowing our employees to take a few hours each year to engage in a project that is particularly close to their hearts. At the same time, the theme of diversity plays a major role for us: We want people of every gender and every background to be able to contribute to our company and sustainably enrich it with their contributions. This conviction unites the entire leadership level in our organization and is, in my view, a key success factor for the future of Cummins: we need all talents and perspectives to meet all the diverse challenges that come with change in our industry!