Jennifer Rumsey, who became CEO of engine maker and technology provider Cummins Inc. a year ago, also will chair the company following the retirement of her mentor and vocal fan, Tom Linebarger.
The mutual admiration between the two played out again Wednesday with the announcement that Rumsey would succeed Linebarger Aug. 1 as chair of the board of the Columbus, Indiana-based Tier 1 supplier.
“I would like to extend my sincere gratitude to Tom who has been an extraordinary leader for this company and an invaluable colleague and mentor to me,” Rumsey said in a news release. “His leadership of this company has shaped my journey and approach to leadership at Cummins and helped position us for a bright future.”
Mutual admiration society
As he did when he handed off the CEO role to Rumsey, Linebarger spoke of Rumsey as a generational leadership choice: “I am delighted to pass this role to Jennifer and firmly believe she is the ideal leader to guide Cummins at this important time.”
Linebarger also stepped down as executive chairman. He took that role in 2022 to see through major projects, like the $3.7 billion acquisition of Meritor Inc. He served as Cummins’ chairman and CEO from 2012 to 2022. During his 10-year tenure, the company grew its revenue from $17.3 billion to a record $28.1 billion last year.
Determining where Linebarger stops and Rumsey begins is difficult because of how closely they worked together in recent years. Rumsey became president and CEO in August 2022. During a two-decade career, she was chief technology officer and chief operating officer. Cummins has had only seven CEOs in its 104-year history. Rumsey is the first female.
Rumsey and Linebarger co-developed the company’s signature Destination Zero campaign. Cummins plans to produce only zero-emissions powertrains by 2050. The company is pursuing its traditional diesel engine business. And it has a rebranded Accelera unit focused on hydrogen electrolyzers and fuel cells.
Record revenues in Rumsey’s 1st year at helm
In her first year as CEO, Rumsey led Cummins to three consecutive quarterly revenue records. She also oversaw absorption of the Meritor business and smaller acquisitions from Siemens and Jacobs Vehicle Systems. She also led the rollout of an industry-first fuel-agnostic powertrain platform that will allow its internal combustion engines to run on natural gas in 2024 and hydrogen in 2027.
Daimler Truck, a major customer that has handed off its medium-duty engine business to Cummins globally, said Tuesday that it too will pursue hydrogen ICE engines within its Detroit unit.
Separately, Cummins on Wednesday increased its quarterly dividend by 7% after paying a quarterly dividend of $1.57 in each of the previous four quarters.