DaimlerChrysler Forms Alliance With Caterpillar
Caterpillar Inc. (CAT) and DaimlerChrysler (DCX) say their new alliance will produce joint sales in medium-duty engines and fuel systems of more than $3.8 billion by 2006.A 50/50 global alliance between Caterpillar and the commercial vehicle division of DaimlerChrysler was announced Nov. 22, two weeks after Volvo Trucks North America's (VOLVY) announcement of an alliance with Cummins Inc. (CUM) (11-13, p.4) and five months after DaimlerChrysler’s purchase of Caterpillar competitor Detroit Diesel (7-24, p.1).According to the agreement, the alliance will create two joint ventures:
The agreement calls for the companies to cooperate in such areas as combustion technology, electronics, air-handling systems, exhaust aftertreatment and materials technology. The companies will also seek synergies through combined purchasing.For the full story, see the Dec. 4 print edition of Transport Topics. Subscribe today.
- A medium-duty engine joint venture that will “develop, manufacture and market current and future medium-duty engines and parts for sale to third-party customers and to DaimlerChrysler and Caterpillar for use in their own products.”
- A fuel systems joint venture that will develop advanced technology fuel systems to market to third-party customers and to the parent companies.
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