Caterpillar, Navistar to jointly build, sell trucks
Caterpillar Incand Navistar International Corp NAVZ.PK are forming an alliance to build and sell a variety of trucks worldwide, the companies said on Thursday.
The deal quashes speculation that Caterpillar, a major manufacturer of diesel engines and the world's largest maker of construction and mining equipment, would exit the on-highway vehicle business altogether. It also provides an additional signal that the North American truck-making business is consolidating along the lines of the business in Europe.
Caterpillar said one of the trucks produced by the strategic alliance -- a heavy-duty truck for mining and highway construction customers -- would be on the road by 2010.
Caterpillar, based in Peoria, Illinois, also said it would stop supplying engines to other on-highway truckmakers, starting with the introduction of engines designed to comply with 2010 U.S. clean-air rules. It said it would begin developing engines in partnership with Navistar.
Uncertainty has surrounded Caterpillar's on-highway diesel engine business for more than a year, after problems associated with powerplants designed to meet tough 2007 U.S. clean-air rules allowed Caterpillar rival Cummins Inc to gain a big share of the North American market.
That threw a big question mark over Caterpillar's engine business at a time when the North American truck-making industry, which traditionally bought its engines from independent suppliers like Caterpillar and Cummins, was rapidly changing as more manufacturers, like Paccar Inc, moved engine-making in-house.
The Caterpillar-Navistar partnership comes at a time when the North American big-rig truck market is in a downturn, due in part soaring fuel prices, which have prompted sporadic protests by independent truckers.
Adding pressure is the slowdown in the U.S. economy. A surge in truck purchases in 2006, as long-haulers rushed to buy ahead of the implementation of the 2007 clean-air rules, also means there are now too many trucks chasing too little freight. As a result, the rebound that truckmakers were counting on in 2008 has not materialized, putting pressure on the industry.
Industry tracker A.C.T. Research estimates truckmakers will receive orders this year for 234,000 Class 8 trucks -- the biggest rigs -- up just 10 percent from last year's trough of 212,000.
Views:0
- Yuchai Power Purchases 49% of Caterpillar Shares on Yuchai 2014-07-04
- Trucking Company Sues Caterpillar over Acert Engine Technology 2013-04-15
- Caterpillar invests $100 million for production base in Xuzhou 2012-03-26
- Peterson wins supplier excellence award from Caterpillar 2011-11-15
- Caterpillar now delivering first CT660 vocational trucks 2011-09-29
- Caterpillar 775G Mine Dumper to Release 2011-03-04
- Caterpillar to invest and establish plant in Thailand 2011-01-18
- Caterpillar plans to hit heavy truck market with the help of JAC 2010-12-30
- Caterpillar to shift complicated components base to China 2010-12-02
- Caterpillar will strengthen the investment to Jiangsu 2010-11-26
Submit Your Requirements, We Are Always At Your Service.
- BYD Stopped the Production of Fuel Vehicles
- Geely Began Test Runs of Green E-methanol Vehicles in Danmark
- 2022 SANY Global Dealer Summit Was Held Successfully Online
- BYD and Shell Partner on EV Charging across China and Europe
- Daimler Truck Significantly Increase Sales, Revenue and Net Profit in 2021
- Scania Year-end Report January-December 2021
- Hyundai Motor and Iveco Group Sign MOU to Explore Future Collaboration
- GAUSSIN Enters China, the Largest Truck Market in the World
- Over 1,200 Hydrogen-powered Vehicles Deployed for the Beijing Winter Olympics
- Chinese New Year Holiday Closure Notice
- China's Truck Exports Grew by 30% YOY to 63490 Units in January-February
- China's New Energy Heavy Trucks Grew Despite an Overall Slump
- Heavy-duty Truck sales in China Fell by 54% to 54,000 units in February
- SINOTRUK Achieves Sales of 27,725 Vehicles in January, 2022
- China’s Domestic Tractor Sales Exceed 40,000 Units in January
- 2021 JAC International Pickup Export Performance
- JAC Achieved a Great Result in 2021
- China's Truck Export in 2021 Reached a 10-year Peak
- Heavy-duty Truck Sales in China Fall 57 Percent on Year in January
- China Recorded Sales of 645000 Tractors in 2021