Cummins, Inc. : a bump in the road to new emission standards in China (B) / Constance E. Bagley, Douglas W. Rae, Jean W. Rosenthal.
Material type:
TextSeries: Publisher: London : Yale School of Management, 2010Description: 1 online resourceContent type: - text
- computer
- online resource
- 9781526431097 (ebook) :
- 338.4762140951
Originally published in Bagley, C., Rae, D., & Rosenthal, J. (2010). Cummins, Inc.: A bump in the road to new emission standards in China (B). 10-018. New Haven, CT: Yale School of Management, Yale University.
On December 27, 2008, just three days before the date set for implementation of stricter emission standards for diesel engines, China's regulatory agency issued a letter to all diesel manufacturers: Manufacturers could continue to sell engines that met the less stringent NS-II standards until July 1. However, the implementation date had not been moved -- engines manufactured after January 1 had to meet the new NS-III standards. Steve Chapman, Group Vice President -- Emerging Markets and Businesses for Cummins, Inc., knew his company faced a dilemma. Cummins planned to comply with China's new emission standards and was prepared to produce a NS-III engine. It was also ready to manufacture NS-II engines if implementation was postponed. But the Ministry letter made the regulatory situation far from clear.
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