The new combined unit will be headed by F.J. "Joe" Loughrey, currently executive vice president and group president - industrial. Loughrey will become executive vice president and group president - engine business and also continue in his role as chief technical officer for the company.
Loughrey is also "heir apparent" to the job of president and chief operating officer, currently held by Tim Solso. According to reliable sources, Solso will replace Cummins Chairman and Chief Executive Officer Jim Henderson, who plans to retire at the end of the year.
"Joe Loughrey and I have worked together for 25 years," says Solso. "His experience with customers, employees, and product development is unmatched."
The announcement also comes on the heels of news that Roberto Cordaro is resigning. While Cummins says the business reorganization will let them "deal more effectively with our customers and competitors, many of whom are in both the automotive and industrial sectors," knowledgeable sources say at least part of the reason for combining the automotive and industrial units is to avoid having to find a replacement for Cordaro.
Cordaro's decision to seek other opportunities is no doubt due to the fact that the recently decided plans to move Loughrey into the president position leave Cordaro with no place to move up in the Cummins organization.
According to Solso, the combination of the automotive and industrial business units will let Cummins improve the management of common assets, including plants, technical centers and distributors, as well as further reduce duplication and complexity within the company.
Loughrey, 49, joined Cummins in 1974 as manager - employment and held various positions relating to personnel including until 1984, when he was named managing director of Cummins' Holset subsidiary in the United Kingdom. In 1986, he returned to the U.S. as Vice-President - Employee Relations. He assumed additional responsibilities as head of Cummins' operations in southern Indiana in 1987, and a year later, was appointed Vice-President - heavy-duty Engines. He was named group vice president - worldwide operations in 1990, and assumed the role of chief technical officer in 1995. Loughrey was appointed head of the industrial business unit in 1996.