Caterpillar To Park Work Truck Program

Launched with much hype at ConExpo-Con/Agg 2011, Caterpillar Inc. shocked many in the industry today when it announced it will discontinue production of its on-highway vocational trucks.

Cat said based on the current business climate in the truck industry and a thorough evaluation of the business, it would withdraw from this market. The Peoria, Ill. manufacturer also said the move was in line with the its ongoing restructuring to align its businesses with existing conditions. As a result of this action, Cat said it will cease taking new orders for vocational trucks, although it will support the existing trucks currently on the road.

When Caterpillar launched its first vocational truck in the North American market in 2011, it worked 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.