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Caterpillar to Exit Class 8 Engine Market After 2010

Signs Agreement with Navistar to Build Heavy-Duty Truck

Caterpillar Inc., which said Thursday it has signed an agreement to develop a heavy-duty truck with Navistar International Corp., said it would not develop and sell engines that meet 2010 emissions standards to other truck original equipment manufacturers.

The new truck that will be built jointly with Navistar will be used in road and infrastructure building under the Cat brand name, Caterpillar said in a statement.

Caterpillar has historically been a large-scale heavy-duty engine vendor to the Paccar Inc. operating companies Kenworth Truck Co. and Peterbilt Motors Co.

“Caterpillar and our dealers will continue to provide product support and service beyond 2010 for all Caterpillar on-highway engines regardless of truck brand,” Caterpillar Group President Douglas Oberhelman said in a statement.

Caterpillar and Navistar said they will work together to develop, manufacture and distribute commercial trucks outside of North America, including a full line of medium and heavy-duty trucks.

Navistar has a distribution network in Mexico and Latin America, and Caterpillar sells on-highway truck engines in Australia and New Zealand, Mexico and throughout Latin America, as well as in the United Kingdom, Belgium, Russia, China and South Africa.

Caterpillar, which makes engines and heavy equipment, also said it will invest more than $1 billion through 2010 to expand five of its Illinois factories, to meet demand for machines including excavators, wheel loaders and large off-highway trucks.

The two said they would cooperate on engine development, including mid-range engines for diesel applications such as school buses and utility trucks.

That would support each company’s stated path not to utilize urea-based selective catalytic reduction technology, they said.

By Transport Topics

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