Caterpillar and Navistar Pursue Strategic Alliance

June 16, 2008
Caterpillar and Navistar International Corp. signed a memorandum of understanding to pursue global on-highway truck business opportunities and cooperate on a variety of engine platforms.

Caterpillar and Navistar International Corp. signed a memorandum of understanding to pursue global on-highway truck business opportunities and cooperate on a variety of engine platforms. The two companies intend to focus on global truck opportunities, including North American severe service construction trucks, as well as technology development for engines worldwide.

Through this 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. Concurrent with this new strategic direction, Caterpillar has determined independently that it will not supply EPA 2010-compliant engines to truck and other on-highway OEMs.

“Caterpillar and our dealers will continue to provide product support and service beyond 2010 for all Caterpillar on-highway engines regardless of truck brand,” said Douglas Oberhelman, Caterpillar group president. “This new truck-targeted for 2010-will incorporate Caterpillar’s construction and mining machines and provide construction customers a one-stop solution. In addition, with nearly 90 percent 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 companies have commissioned teams to focus on the truck and engine opportunities. The initiatives contemplated by the understanding are subject to completion of due diligence, execution of definitive agreements and regulatory approvals.