Caterpillar to end production of vocational truck products
Created Date: 2016-05-13 11:20:03
PEORIA, Ill. — Caterpillar Inc. (NYSE: CAT) today announced it will discontinue production of its on-highway vocational trucks. Based on the current business climate in the truck industry and a thorough evaluation of the business, the company decided it would withdraw from this market. This is also in line with the company’s ongoing restructuring to align its businesses with existing conditions. As a result of this action, the company will cease taking new orders for vocational trucks, although Caterpillar remains committed to existing truck customers and will support the existing trucks currently on the road.
Caterpillar launched its first vocational truck in the North
American market in 2011, working with Navistar on the products’ design
and build. Last year, the company announced its intention to begin
independently designing and manufacturing its vocational truck products
at the Caterpillar plant in Victoria, Texas.
“Remaining a viable competitor in this market would require
significant additional investment to develop and launch a complete
portfolio of trucks, and upon an updated review, we determined there was
not a sufficient market opportunity to justify the investment,” said
Ramin Younessi, vice president with responsibility for Caterpillar’s
Industrial Power Systems Division. “We have not yet started truck
production in Victoria, and this decision allows us to exit this
business before the transition occurs.”
This announcement will impact approximately 70 positions. The
reductions will begin in March and will take place over a period of
time. (Source: Caterpillar)