Caterpillar ends on-highway vocational truck production
By Joe Malone01 March 2016
Caterpillar will discontinue production of its on-highway vocational trucks, some eight months after ending its collaboration with Navistar International.
Caterpillar describes the range as trucks designed specifically for vocational ‘applications’.
The decision is based on the current business climate in the truck industry and a thorough evaluation of the business.
The decision was also in line with Caterpillar’s ongoing restructuring to align its businesses with existing conditions. As a result of this action, the company will cease taking new orders for vocational trucks, although Caterpillar said it remained committed to existing truck customers and would support the existing trucks currently on the road.
Caterpillar and Navistar International first signed a memorandum of understanding in June 2008 to work together to develop, manufacture and distribute on-highway trucks throughout the world.
Caterpillar then launched its first vocational truck in the North American market in 2011.
Last year, the company announced its intention to begin independently designing and manufacturing its vocational truck products at the Caterpillar plant in Victoria, Texas.
The latest announcement will affect approximately 70 positions. The reductions will begin in March and will take place over a period of time.
Ramin Younessi, vice president with responsibility for Caterpillar’s industrial power systems division, said, “Remaining a viable competitor in this market would require significant additional investment to develop and launch a complete portfolio of trucks, and upon an updated review, we determined there was not a sufficient market opportunity to justify the investment.