Although Cat has serviced truck engines for more than 40 years, this is the first time the company, through its strategic supply deal with Navistar, will act as a vertically-integrated truck maker.

The tricky relationship between Cat and Navistar poses some challenges. First, Navistar Class 8 trucks typically don't command a resale value as high as other trucks, sources say. Also, Navistar has not yet revealed its long-term strategy to reduce emissions in its heavy-duty engines. Instead, it has been building noncompliant engines with federal emission credits it earned from its earlier powerplants that exceeded the standards.

Cat officials say the Navistar-built engines will not be a problem to future development.

"They do have a solution," says Blood. "We're involved with it, and we're comfortable. What you will see, I think everyone will say, 'Hmmm. Good idea.'"

Although Navistar is building the trucks in Garland, Texas, the vehicles contain Caterpillar part numbers and are sold only through Cat dealers. Since no secondary market yet exists for a Caterpillar work truck, Cat is banking that its brand will create the value.

"We had a higher market share with the vocational segment when we were in these engines," says Blood. "These people know us, and they know we are going to take care of them." Cat exited the on-highway engine business in 2008 as truck manufacturers made the push to vertically integrate.

In addition to styling the truck inside and out with Cat-like features to appeal to machinery buyers, the company also is sending the CT660 to Cat rental yards to give users a chance to try it before they buy it.

Getting trucks out the door has been tough, though, as suppliers, hit hard by the downturn, have been slow to ramp up production.

"We continue to monitor supply-chain issues at several OEMs in a variety of components (such as tires and fuel systems) that could cause OEMs to re-evaluate forecasts," says J.P. Morgan equity analyst Ann Duignan in a recent note to investors. "The supply base right now is a little fluky," Blood adds.

Read our road test of the CT660 here.