Caterpillar Inc. and Navistar International Corp. sign a memorandum of understanding to pursue global on-highway truck business opportunities and cooperate on a variety of engine platforms.
“We are pleased to be matching our formidable talents and technology leadership of two industry leaders to serve an expanding base of engine, truck and equipment customers worldwide,” says Caterpillar Chairman and CEO Jim Owens.
Navistar Chairman, President and CEO Daniel Ustian, says the MOU is a perfect example of the company’s growth strategy. “In partnership with Caterpillar, we intend to extend our leading-edge product focus that we have in North America into the rest of the world.”
Through the alliance, Caterpillar plans to target a 2010 introduction of a North American Cat-branded heavy-duty truck for severe-service applications, such as road construction, large infrastructure projects and oil and petroleum development.
Caterpillar says it will not supply Environmental Protection Agency 2010-compliant engines to truck and other on-highway manufacturers.
“Caterpillar and our dealers will continue to provide product support and service beyond 2010 for all Caterpillar on-highway engines regardless of truck brand,” says Douglas Oberhelman, Caterpillar group president. “This new truck, targeted for 2010, will incorporate the legendary quality of Caterpillar’s construction and mining machines and provide construction customers a one-stop solution.
“In addition, with nearly 90% of our engine business being off-highway, we’ll continue to concentrate on our substantial and growing opportunities to supply engines in the petroleum, marine, electric-power generation and industrial markets, as well as produce engines for our own construction and mining equipment.”
The initiatives outlined in the MOU are subject to completion of due diligence, execution of definitive agreements and regulatory approvals, the companies say.