Cat ends dump truck outsourcing deal with Navistar Caterpillar plans to leverage reputation in the construction industry to build own-brand dump trucks at a plant in Texas, while winding down its existing arrangement with Navistar, a source told the Wall Street Journal. Caterpillar has been selling the on-road trucks built by Navistar since 2011, but from 2016, the group will start assembling trucks built in Japan and imported to **rth America at its plant in Victoria, the source said. The trucks will also be furnished with Caterpillar’s own engines, said the source. Caterpillar was previously a major supplier of diesel engines to the **rth American commercial truck industry, but abandoned the market in 2010 when faced with a costly upgrade of its exhaust-treatment system to comply with stricter federal standards on emissions. Since then, those regulations also have been applied to off-road equipment, so Caterpillar has had to adapt its engines and could resume making them for highway trucks again with minimal new cost. According to the WSJ, the Navistar-built, Caterpillar-branded trucks haven’t been a big hit with truck buyers, and sales of the three truck models have averaged about 1,000 units annually for the past three years. The move could help Caterpillar more effectively leverage its reputation in the construction industry for high-quality machinery, while the assembly of the trucks at the Texas plant will create work at a time of falling demand for the construction excavators it was built to manufacture. RELATED ARTICLES: Tata-bags-1-200-6x6-truck-order-for-Indian-Army , Oman-contractor-buys-fleet-of-20-Actros-trucks , Zahid-Group-rolls-out-Saudi-Volvo-truck-production ,
08-04-2015, 08:13 PM
Cat ends dump truck outsourcing deal with Navistar
Caterpillar plans to leverage reputation in the construction industry to build own-brand dump trucks at a plant in Texas, while winding down its existing arrangement with Navistar, a source told the Wall Street Journal. Caterpillar has been selling the on-road trucks built by Navistar since 2011, but from 2016, the group will start assembling trucks built in Japan and imported to **rth America at its plant in Victoria, the source said. The trucks will also be furnished with Caterpillar’s own engines, said the source. Caterpillar was previously a major supplier of diesel engines to the **rth American commercial truck industry, but abandoned the market in 2010 when faced with a costly upgrade of its exhaust-treatment system to comply with stricter federal standards on emissions. Since then, those regulations also have been applied to off-road equipment, so Caterpillar has had to adapt its engines and could resume making them for highway trucks again with minimal new cost. According to the WSJ, the Navistar-built, Caterpillar-branded trucks haven’t been a big hit with truck buyers, and sales of the three truck models have averaged about 1,000 units annually for the past three years. The move could help Caterpillar more effectively leverage its reputation in the construction industry for high-quality machinery, while the assembly of the trucks at the Texas plant will create work at a time of falling demand for the construction excavators it was built to manufacture. RELATED ARTICLES: Tata-bags-1-200-6x6-truck-order-for-Indian-Army , Oman-contractor-buys-fleet-of-20-Actros-trucks , Zahid-Group-rolls-out-Saudi-Volvo-truck-production ,
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