For a long time, the immature technology and the incompetent management and leadership were kept under the radar. But now, the green sl--e bo-b exploded in their faces.
A letter has been sent to ALL customers with commissioned units ordering them to immediately shut the units down due to safety issues related to the electrolysis cell stacks. Not for the first time as this follows a similar safety shutdown action in 2023 driven by a deflagration of 1 unit in China resulting in a worldwide retrofit at Cummins expense. All PEM units were mothballed and retrofitted to include a nitrogen purge. New units were redesigned around an oxygen purge solution. Both resulting in shut downs plus production losses and delays in delivery for up to 2 years.
The difference this time is that the engineering teams have been desolved due to discontinuation of the business and the remaining team has been requested to sit idle. No solution is expected.
Several customers, some rightfully claiming to being confronted with a second loss of production, have indicated plans to file lawsuits to claim back the investment and loss of production (consequential damages).
If successful and followed by others/most/all, this can cost Cummins billions - with a B!
Wondering how the VP who proudly displays her success as a parent of 3 on other media will be able to survive this new presentation of her total failure. Accountability is not a term Cummins mgmt is familiar with, but shareholders might have a different view.
Forget your 2027 bonus people!