Cat USA takes trucks in-house

Caterpillar in America has announced that, from early next year, it will begin designing and manufacturing its own line of on-highway vocational trucks.

The move comes as Caterpillar concludes its contract with Navistar for the latter to supply Cat-branded vocational trucks in the US, leaving Navistar to pursue its own line of vocational products.

Caterpillar says it will build its own vocational trucks at its Victoria plant in Texas from early next year. Opened in 2012, the plant currently produces hydraulic excavators.

Excavator production will continue at the plant alongside the production of new vocational trucks, with the addition to create a further 200 jobs.

Three Cat-branded vocational trucks are currently offered in North America: the CT660 (pictured), CT680 and CT681. All three are currently produced at Navistar's production facility in Escobedo, Mexico.

According to Chris Chadwick, Caterpillar's Director of the Global On-Highway Truck Group, bringing the vocational truck business in-house will allow it to better meet its customers' needs.

"The on-highway vocational truck product family is important to our product line; customers like our trucks and want to include them in their fleets in a variety of heavy-duty applications such as dump trucks, mixers, haulers or one of the other configurations we offer," he said in a media statement.

"To continue to provide the best solution for our customers, we will bring the design and manufacturing of this product into Caterpillar, and the production specifically to Victoria. Our updated strategy reaffirms our commitment to grow and develop our presence in the vocational truck industry moving forward."

Mr Chadwick thanked Navistar for its expertise.

"We appreciate the collaboration we have had with Navistar," he said.

"As we look to future launches of new truck models, the updated strategy will better position us to help provide our customers with the best products and services for this market."

Navistar, meanwhile, which will continue to produce Cat-branded trucks in the US until the end of this year, says it will now produce its own line of vocational trucks, leveraging shared technology and intellectual property developed through its association with Cat.

According to Bill Kozek, Navistar President, Truck and Parts, the formal conclusion of the Cat agreement leaves the way clear for a new line of 'premium' vocational trucks all its own.

"Navistar and Caterpillar have had a strong, collaborative working relationship through a number of projects and partnerships for many, many years," he said in a Navistar media statement.

"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."

Cat Trucks here in Australia has moved quickly to quash any concerns that the Cat/Navistar announcements may impact the local market.

Glen Sharman, Director of Sales, Marketing and Business Development for Navistar Auspac, the Navistar subsidiary that looks after Cat Trucks and International in Australia, said Cat's US truck business was entirely separate to the Australian Cat Trucks business, which would proceed unaffected.

"The Cat-branded trucks supplied to Australian, New Zealand and Pacific markets are completely different models to the Cat vocational range, which is a uniquely Caterpillar product," he said.

Cat Trucks offers a range of models in Australia based on International's ProStar platform, such as the CT630S, CT630SC, and the recently introduced, road-train-triple-rated CT630HD.

"Navistar certainly wouldn't be investing in development of these models if it saw anything other than a long and strong future for Cat-branded trucks in our markets," Mr Sharman said.

Meanwhile Navistar Auspac has confirmed that Caterpillar will continue to supply Cat Trucks with its CT13 and CT15 engines, also emphasising that the latter has a long future within the Cat Trucks family.

David Schmitz, Product Manager for Caterpillar Trucks in the US, says news regarding the CT15 is imminent.

"Earlier this year we mentioned that we will have a 15-litre announcement later this year and it is still on track," he said.

"The 15-litre engine is key to future growth."