4/17/2009
Caterpillar, Navistar Announce Global Joint Venture for Commercial Trucks
Two companies also announce North America strategic alliance for vocational trucks.
As the next step
in the alliance announced in June 2008, Caterpillar Inc. and Navistar
International have signed a definitive agreement to produce
Caterpillar heavy-duty vocational trucks for sale in North America and
form a 50/50 joint venture that will pursue global commercial truck
opportunities outside of North America.
"This joint venture leverages the complementary strengths of two great
companies to serve global markets," said Daniel Ustian, chairman,
president and CEO, Navistar. "The venture will be distinctively
positioned to offer customers world class on-highway trucks through the
unequaled sales and service network of Cat and International dealers
around the world, and the deep product expertise of Navistar."
"We are extremely pleased with the commitment that the teams have
demonstrated to make the signing of this global venture possible," said
Caterpillar Chairman and CEO Jim Owens. "This is an important milestone
and Caterpillar looks forward to becoming a significant player in the
global on-highway truck market. Additionally, the introduction of a Cat
Vocational Truck line in North America represents an exciting
opportunity for Caterpillar and the Caterpillar dealer network to
extend our reach in this market and offer customers a total job site
solution."
Global Commercial Truck Markets Outside of North America
The 50/50 joint venture will develop, manufacture and distribute
commercial trucks in regions outside of North America and India.
Markets for the joint venture products will be assessed individually
with initial focus being Australia, Brazil, China, Russia, South Africa
and Turkey. It is anticipated that the portfolio of products will
feature both aero nose and cab-over designs and will be sold under both
the Caterpillar and International brands. The first products are
expected to be available as early as the third quarter of 2009.
"We believe this clearly is an opportunity where the whole is greater
than the sum of the parts," said Dee Kapur, president Navistar Truck
Group. "While Cat and Navistar do not compete in our core businesses,
each brings distinctive capabilities to the table and have common goals
to expand the base of engine, truck and equipment customers worldwide."
The transaction is subject to receipt of various regulatory approvals
and other closing conditions, including the execution of the related
joint venture operating agreement and other ancillary agreements.
Following the closing of the transaction, a leadership team and board
of directors comprised of both Caterpillar and Navistar representatives
will be named.
North America Caterpillar Vocational Trucks
Under the strategic alliance Caterpillar and Navistar will develop and
manufacture a new line of heavy-duty Caterpillar vocational trucks for
North America only. The new Caterpillar trucks will be co-developed by
Caterpillar and Navistar and manufactured in Navistar's Garland, Texas
facility. The trucks will be sold and serviced through the Caterpillar
North American Dealer network.
"The heavy-duty vocational trucks will be purpose-built to complement
Caterpillar's existing product line and will give Caterpillar dealers
an unmatched ability to support customer needs from extraction through
delivery," said George Taylor, director and general manager of the
Caterpillar Global On-Highway Department.
The Caterpillar trucks will feature key Caterpillar proprietary
components and technology and will target customers who operate in a
wide variety of vocational applications, such as earth moving, quarry,
waste, mining, general and heavy construction, logging and road
construction.
"Caterpillar is proud to be working with an innovative leader to
provide our customers distinctly Caterpillar vocational trucks in North
America," Taylor added.
The new Caterpillar on-highway vocational trucks will be unveiled in
late 2010 and will go into full production in early 2011. The trucks
will be sold and serviced exclusively by Caterpillar Dealers in North
America. The transaction is subject to various closing conditions,
including the execution of the related strategic alliance agreement and
certain other ancillary agreements.