Cummins Promotes Jennifer Rumsey To CEO As Diesel Giant Seeks Cleantech Overhaul

The world's largest maker of diesel engines for trucks and heavy-duty vehicles wants to become a major player in the market for clean electric and hydrogen- fueled commercial vehicles. Replacing long-time chief Tom Linebarger will be the new CEO, Jen Rumsey.

Rumsey will take over as president and COO of the Columbus, Indiana-based manufacturer on August 1. She will be the first woman to lead the company since it was founded in 1919. Linebarger has been the company's leader since 2012 and will become executive chairman.

Linebarger started looking beyond the company's core diesel business when he ran Cummins. The New Power division was created to commercialize battery, hybrid and hydrogen fuel cell systems for trucks, trains and other heavy vehicles. Rumsey is going to continue the shift to products that generate less climate warming emissions.

It is going to be difficult. The technologies that can get you all the way to zero are still significant advancement in some of these technologies. A build-out is needed for battery and hydrogen systems.

Rumsey spent a year as a group leader working on hydrogen fuel cells for Nuvera before he joined Cummins. She graduated from Massachusetts Institute of Technology with a degree in mechanical engineering.

One of the few global industrial companies to be led by a woman is Rumsey's new employer. She wants Cummins to see the kind of dominance in electric and hydrogen systems it has achieved in diesel.

Power trucks, boats, trains, mining equipment, military vehicles and generators are some of the things the company sells each year. Last year, Cummins had a net income of over 2 billion dollars. The New Power unit made just $108 million of revenue in 2011. Second-quarter and first-half earnings will be released on August 2.

Rumsey said that Cummins is completing a $3.7 billion acquisition of automotive components maker Meritor and that there may be more deals to come.

Some of the key technology that we may need is one of the things we're evaluating. If they make sense, we will do acquisitions.

Rumsey was key to managing Cummin's global operations in the past year as supply chain issues and higher commodity prices became big headaches, and is well-suited to run things going forward.

See: How Diesel Giant Cummins Might BeatTesla in the Green Battle Engine.

Linebarger said thatJen is the right leader for Cummins. The decarbonization of our industry will be a significant growth opportunity for Cummins, and she was my partner in the development of theDestination Zero strategy.

The company's share price fell in New York.