Caterpillar Inc., the construction and mining machinery giant, unveiled a new strategic alliance on June 12 with Navistar International Corp. to develop, build and sell medium and heavy duty commercial trucks worldwide. It marks a strategic shift from Cat as a component supplier for on-highway trucks to a vertically-integrated truck builder.
Peoria, Ill.-based Caterpillar says it will halt engine sales to other truck makers, which had accounted for about 6% of its engine sales, once federal 2010 clear-air rules go into effect. It will still service and support those engines during their lifespan, however. There are currently 1.6 million Caterpillar on-highway truck engines in service.