Cat and Navistar move truck plans forward

By Chris Sleight07 April 2009

Caterpillar chairman and chief executive Jim Owens.

Caterpillar chairman and chief executive Jim Owens.

Caterpillar and Navistar have followed-up last June's memorandum of understanding with the formation of a 50:50 joint venture to produce Caterpillar-branded on-highway trucks in North America. The joint venture will also look at truck markets outside North America, with a focus on emerging economies.

Daniel C. Ustian, chairman, president and CEO of Navistar said, "The venture will be distinctively positioned to offer customers world class on-highway trucks through the unequalled sales and service network of Cat and International dealers around the world, and the deep product expertise of Navistar."

Caterpillar chairman and CEO Jim Owens added, "This is an important milestone and Caterpillar looks forward to becoming a significant player in the global on-highway truck market."

In North America the joint venture will focus on what it describes as heavy-duty vocational trucks. They will be co-developed by the two companies and manufactured in Navistar's factory in Garland, Texas. These Cat-branded machines will only be sold in North America, by Caterpillar's dealer network.

The trucks will include key Caterpillar proprietary components. Target markets will include earth moving, quarry, waste, mining, general and heavy construction, logging and road construction.

Outside North America and India the joint venture will manufacture and distribute commercial trucks. The first markets being considered are Australia, Brazil, China, Russia, South Africa and Turkey, and products are expected to include US-style aero nose trucks as well as European-style cab-over designs.

Trucks will be sold under both the Caterpillar and Navistar's International brand, with the first products available in th3e third quarter of this year.

Dee Kapur, president of Navistar Truck Group said, "We believe this clearly is an opportunity where the whole is greater than the sum of the parts. While Cat and Navistar do not compete in our core businesses, each brings distinctive capabilities to the table and have common goals to expand the base of engine, truck and equipment customers worldwide."

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