Caterpillar, Navistar to End Vocational Venture; Plan to Build Severe-Duty Trucks Independently
Caterpillar Inc. and Navistar International Corp. will terminate the arrangement under which Navistar builds vocational trucks for Caterpillar, and each company will move forward with independent lines of severe-duty trucks, the companies announced in separate statements.
Caterpillar said it will begin designing and manufacturing its own vocational trucks at its factory in Victoria, Texas. The plant opened in 2012 and currently produces hydraulic excavators, but preparations for truck production will begin immediately, the company said.
Caterpillar’s vocational trucks are currently manufactured by Navistar at that company’s factory in Escobedo, Mexico.
Caterpillar truck production at the Texas plant is expected to begin in the first half of 2016 and is forecast to add 200 jobs to the facility. The plant also will continue to build the excavators.
“The on-highway vocational truck product family is important to our product line,” said Chris Chadwick, Caterpillar’s director of its Global On-Highway Truck Group. “Our updated strategy reaffirms our commitment to grow and develop our presence in the vocational truck industry moving forward.”
Caterpillar launched its first vocational truck, the CT660, in the North American market in 2011. Two more models, the CT680 and CT681, since have been introduced.
“We appreciate the collaboration we have had with Navistar,” Chadwick said. “As we look to future launches of new truck models, this updated strategy will better position us to help provide our customers with the best products and services for this market.”
Navistar, meanwhile, said it will move forward with its own line of severe-duty trucks and wind down production of the Caterpillar trucks.
“Navistar and Caterpillar have had a strong, collaborative working relationship through a number of projects and partnerships for many, many years,” said Bill Kozek, president of Navistar’s North America Truck and Parts unit. “This next phase provides Navistar with an exciting opportunity to introduce new technologies and product features into our new line of premium vocational trucks that we’ll launch in 2016.”
The company said that, while it will build Caterpillar trucks through December 31, 2016, it will leverage “shared technology and intellectual property from its venture with Caterpillar” for a new line of International trucks that will debut in early 2016.
