Cummins to significantly cut costs in China

Shanghai, July 16 (Gasgoo.com) U.S.-based diesel engine manufacturer Cummins Inc said on Tuesday that it was seeking double-digit percentage cost cuts in China in 2009, following a 96 percent drop in its global earnings in April, reports Reuters.

"I'm certainly glad I'm in China," John Watkins, the chief executive of Cummins (China) Investment Co, told Reuters in an interview.

Watkins said that "We are much more focused on costs now," but added that Cummins will not resort to layoffs at its Chinese operations to meet its cost-efficiency targets, but would rather eliminate certain pre-determined areas.

While predicting a fall in sales in China this year, he said that decline would be much smaller than company will suffer elsewhere.

The company also plans to open four more factories this year in China, one of which will become its largest in the world when it reaches capacity of 400,000 engines annually.