content_image/77228.jpg content_image/77241.jpg content_image/77240.jpg
## Medium-duty Truck & Bus 

Overall, shipments of engines for medium-duty trucks declined five percent from 1999 levels, as stronger European and Latin American sales offset the weakened North American markets. Ford recognized our product quality with its Q1 supplier designation for the engines we shipped to its plant in Mexico. 

Cummins maintained its #1 position in the transit bus market, and Blue Bird Corporation selected the ISB engine as standard power in its conventional school bus. 

## Construction, Agriculture, Marine 

Sales for these industrial markets were up four percent over last year. The QSM11 marine engine continued to draw excellent reviews throughout 2000. Worldwide construction markets softened slightly through the year, as North American business declined but Asian markets improved. 

## Heavy-duty Truck 

The North American market for heavy- duty engines declined dramatically from the record levels of 1999GLYPH<209>driven by an oversupply of new and used trucks and a general economic slow- down. The falling volumes forced significant reductions in our work force. Outside of the U.S. and Canadian markets, sales of truck engines grew steadily, most notably in Mexico, Europe and Latin America. Cummins is the market leader in the United Kingdom, Australia and Mexico. 

## Improvements and Investments 

The corporate-wide Six Sigma process improvement program was central to efforts to address quality issues. In 2000, our participants completed projects with an annualized value of almost $16 million. 

<img src='content_image/77228.jpg'>

We also benefited from the work of direct and indirect purchasing teams, which helped us reduce costs signifi- cantly by consolidating purchases and negotiating deeper discounts. 

With more stringent environmental rules on the horizon, we invested in research for advanced solutions to emissions control. One such investment is a minority interest in a privately held manufacturer and developer of catalytic products for air pollution control and fuel cell systems. 

We also invested in a common infor- mation technology platform across all our distributors in North America. That platform gives us greater inventory control, customer satisfaction and productivity measurement, as well as a database of best practices in customer care. 

## Looking ahead 

We are leveraging our OEM partner- ships, new product lines, technical strength, production scale, global network and exceptional people to attract new customers. With these assets, and a strategy to reshape our approach to the global truck engine market, we can effectively meet the challenges and capture the opportunities ahead. 

<img src='content_image/77241.jpg'>

<img src='content_image/77240.jpg'>

