September 26, 2008; Minneapolis, MN: In 2008, Cat announced an important strategic change in their participation in the on-highway business. Cat will continue to manufacture and sell Cat on-highway engines for North American customers through 2009. From that time on, however, in a joint venture with Navistar, Cat will move from being an independent engine manufacturer to a global truck supplier. Cat and Navistar will work together to develop and offer best-in-class diesel engine technology for medium and heavy-duty truck engine markets worldwide.

Ziegler Power Systems, as well as all Cat truck engine parts and service dealers across the country and around the world, will continue to provide industry-leading product support and service for all customers who operate legacy Cat on-highway engines, regardless of truck brand, throughout the product’s life.

Cat will also continue supplying engines to the petroleum, marine, electric power generation, and industrial markets and producing engines for its own construction and mining equipment, and they will manufacture and distribute on-highway engines outside of North America, where emissions requirements are different, beyond 2009.

Cat and Navistar bring complementary strengths to the alliance — Navistar’s expertise in truck design, development and manufacturing, and Cat’s worldwide distribution capabilities.

Caterpillar and Navistar have signed a non-binding Memorandum of Understanding to pursue the following five business opportunities together:

• Develop a line of Cat heavy-duty vocational construction trucks for the North American market, with an initial product offering targeted for 2010.
• Design and manufacture a line of medium and heavy-duty commercial trucks for markets outside of North America, leveraging the two companies’ existing distribution capabilities.
• Cooperate on engine development, incorporating best-in-class technology from both companies and supporting their shared path not to utilize urea-based Selective Catalytic Reduction technology.
• Develop mid-range engines for light-duty diesel applications such as school buses and utility vehicles.
• Expand an existing remanufacturing relationship to include Navistar’s MaxxForce on-highway engines and additional REMAN opportunities.

Greg Ross, Truck Engine Business Manager, Shakopee, comments, “We have a very large number of on-highway engines in our territory that will continue to need product support for the next 10 – 15 years, and possibly longer. At the same time, we will exclusively sell and service the new Cat vocational truck beginning in mid 2010.”

By Cat’s definition, vocational will mean any of the following trucks:
- Refrigeration
- Tanker
- Beverage
- Flatbed
- Pipe hauler
- Steel hauler
- Liquid waste hauler
- Grain hauler
- Municipal
- Park forest
- Local distribution
- Heavy hauler
- Mining
- Sanitation
- Water / vacuum
- End dump
- Dump
- Logging
- Concrete hauler
- Hazardous material
- Tow

Related Information: Caterpillar’s continued commitment to the on-highway truck market