Why Regulations Are Fueling Corporate Activism in America
A recent study by The Heritage Foundation found the Obama administration’s stricter fuel economy standards would add thousands of dollars to vehicle purchase prices but would have only “minimal impact on global warming.” Yet, in June 2015, Cummins supported the Environmental Protection Agency’s and National Highway Traffic Safety Administration’s greenhouse gas emission regulations and earned a product endorsement directly from Obama.
What was at stake for Cummins? Perhaps worry about continued access to U.S. military procurement? Pentagon purchase orders have long been a mainstay in the Cummins business model. Since the company publicly opposed the Indiana Religious Freedom Restoration Act in 2014, it has received upwards of $200 million in U.S. defense contracts.
In addition to the $24 million—“one bid was solicited and one was received”—defense contract mentioned in the Gallagher piece, Cummins won Army contracts, Defense Logistics Agency contracts, and just last month received a $4.5 million grant from the U.S. Department of Energy to develop a hybrid electric vehicle.
A recent study by The Heritage Foundation found the Obama administration’s stricter fuel economy standards would add thousands of dollars to vehicle purchase prices but would have only “minimal impact on global warming.” Yet, in June 2015, Cummins supported the Environmental Protection Agency’s and National Highway Traffic Safety Administration’s greenhouse gas emission regulations and earned a product endorsement directly from Obama.
What was at stake for Cummins? Perhaps worry about continued access to U.S. military procurement? Pentagon purchase orders have long been a mainstay in the Cummins business model. Since the company publicly opposed the Indiana Religious Freedom Restoration Act in 2014, it has received upwards of $200 million in U.S. defense contracts.
In addition to the $24 million—“one bid was solicited and one was received”—defense contract mentioned in the Gallagher piece, Cummins won Army contracts, Defense Logistics Agency contracts, and just last month received a $4.5 million grant from the U.S. Department of Energy to develop a hybrid electric vehicle.