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Caterpillar Gives Up on 2010 Emission Standards

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I found this article on RV Business, a website with RV industry articles.



As I read the corporate weasel wording Caterpillar is admitting they are unable to meet 2010 emission standards so will partner with Navistar to develop an off road truck with Caterpillar brand name and engine. The two companies state an intention to try to expand into on road truck markets in other countries, obviously those with less stingent emission standards.



It is less clear whether Navistar will be able to meet 2010 emission standards for heavy on road trucks.



They mention a joint effort in mid range trucks.



Two more huge and successful old American companies damaged or destroyed by the blow-dried empty suits in Congress and their tree hugging supporters in San Francisco, Seattle, Portland, and Boston. None of them could start and drive a heavy truck around the block without 100 staffers, lobbyists, and outside specialists specially hired for the purpose at taxpayer expense.









Caterpillar & Navistar Pursue Strategic Alliance

RV Business

Thursday, June 12, 2008



Caterpillar Inc. and Navistar International Corp. have signed a “memorandum of understanding” (MOU) to pursue global on-highway truck business opportunities and cooperate on a variety of engine platforms. The two companies intend to focus on global truck opportunities, including North American severe service construction trucks, as well as technology development for engines worldwide, according to a corporate release.



"We are pleased to be matching the formidable talents and technology leadership of two industry leaders to serve an expanding base of engine, truck and equipment customers worldwide," said Jim Owens, Caterpillar chairman and CEO. "As the world leader in construction equipment and diesel engines, Caterpillar is now positioning itself for growth in the on-highway truck market. This is an important step for Caterpillar and we look forward to working with Navistar for the continued benefit of our customers. "



"This relationship is a perfect example of Navistar's strategy of growth through leveraging our own assets and those that others have built," said Daniel C. Ustian, Navistar chairman, president and CEO. "In partnership with Caterpillar we intend to extend our leading-edge product focus that we have in North America into the rest of the world. "



Through this alliance, Caterpillar plans to target a 2010 introduction of a North American Cat branded heavy-duty truck for severe service applications, such as road construction, large infrastructure projects and oil and petroleum development. Concurrent with this new strategic direction, Caterpillar has determined independently that it will not supply EPA 2010 compliant engines to truck and other on-highway original equipment manufacturers (OEMs).



"Caterpillar and our dealers will continue to provide product support and service beyond 2010 for all Caterpillar on-highway engines regardless of truck brand," said Caterpillar Group President Douglas R. Oberhelman. "This new truck -- targeted for 2010 -- will incorporate the legendary quality of Caterpillar's construction and mining machines and provide construction customers a one-stop solution. In addition, with nearly 90% of our engine business being off-highway, we'll continue to concentrate on our substantial and growing opportunities to supply engines in the petroleum, marine, electric power generation and industrial markets-as well as produce engines for our own construction and mining equipment. "



The companies have commissioned teams to focus on the truck and engine opportunities. The initiatives contemplated by the MOU are subject to completion of due diligence, execution of definitive agreements and regulatory approvals.



Global Truck Collaboration: The companies intend to work together to develop, manufacture and distribute commercial trucks in select regions outside of North America. The product offering would include a full line of medium and heavy-duty trucks in both conventional and cab over designs.



Engine Technology: Under the alliance, Caterpillar and Navistar plan to cooperate on engine development, incorporating "best in class" technologies from both companies. Caterpillar and Navistar intend to work together on development of mid-range engines for diesel applications, such as school buses and utility trucks, which would support each company's stated path not to utilize urea-based Selective Catalytic Reduction (SCR) technology.



Remanufacturing Growth and Additional Synergies: Through the alliance, the companies also intend to expand their existing remanufacturing relationship to include Navistar's recently introduced MaxxForce on-highway engines. The companies expect to pursue additional remanufacturing opportunities as new vehicles and engines are developed. They also plan to explore opportunities to leverage their scale, combining, for example, raw material and other commodity purchases to reduce costs.
 
Cat hasn't ever created anything themselves anyways. They have alway bought it.



I'm curious to know, who have they been buying it from? I've got a truck with a 3406E which I happen to think is one of the best running engines I've ever owned, even though I'm a bigger fan of Cummins than I am of Cat. If Cat didn't design the engine originally then I'd like to know who to thank.



Maybe Cat has putzed around doing the emission thing, but if it weren't for these assinine emission regulations, that keep changing every 3 or 4 years, these companies might have a better time doing what they do best... building engines.



Not that I'd ever buy a newer Cat engine in a truck, because I've not been impressed by the emission engines, but it is still sad to see a company that has produced such good products for so many years go away like this.



I'm sure someone will say that Cat builds nothing but junk. Lets not even go there. This isn't an endorsement or a slam of Cat. I'm simply sorry to see them go. How long will it be before Cummins gives up?



Duane
 
Besides the emissions BS, another factor that has probably driven Cat to this decision is lack of market share, thanks to Daimler.



Daimler Trucks Division owns Freightliner, Sterling, Western Star - Freightliner alone has over 30% market share for Class 8 OTR trucks.



And Daimler also owns Detroit Diesel - so they have in-house engines available from DD and Mercedes. And deep pockets to develop entirely new engines such as the DD15 - 1. 5 billion in development costs.



Cat and Cummins are just getting muscled out of the market by a larger corporate player, with an unintentional (?) assist from the EPA.



I've worked for Freightliner for 11 years, and seen a lot of Cat engines go into trucks. Most truckers I've talked to say that if you want an engine that will pull all day long, get a Cat.



We got word via e-mail last week that as of January '09 they will no longer supply engines for Class 8 trucks. For me at least, that will be a sad day - they do build tough engines, and some of their solutions to the '07 emissions mad a lot more sense and worked more reliably than their competitors - such as taking EGR from downstream the DPF to reduce the amount of soot sucked back into the intake.



Even though at the end of the day I work for Freightliner and thus Daimler and DD as well, I've always looked at Cat and Cummins as our allies in building these trucks - brothers in diesel so to speak - and it bothers me to some extent that the company I've worked for, that has been one of their biggest customers, may have a hand in driving them from the market and ending an era.
 
The bottom line is Cat's highway engine business was only 6% of their engine business. They make all their money in the equipment lines, and I'm sure the expense to meet the 2010 emission was deemed not worth the cost.
 
MOates said: ... "Most truckers I've talked to say that if you want an engine that will pull all day long, get a Cat. "...



A few years back, even more than that now, there was very little or anything that would run with a Cat. More recently, however, that's not necessarily been the case. Their most recent models have really tarnished Cat's reputation for engines that pulled hard, were fluid tight and trouble free and that also would deliver reasonable fuel economy.



Today's Cat's have been living off their predecessors reputation. All of the heavy duty, big-rig diesels by every manufacturer built since early 2002 are poor relatives of their earlier brethren ... Cat's are just worse than most.



It's not that they don't know how to build a proper engine, you can blame the EPA for turning prime movers into air cleaners.



The exhaust on the 2010 heavy duty diesels is required to be cleaner than their intake air!! Get real folks, talk about diminishing returns! They'll do it though, they'll just be pigs as they go about getting about 75% of the mileage they would get if they only had to exhaust slightly dirtier air than they ingest in exchange for providing our economy with it's motive power.
 
Cat hasn't ever created anything themselves anyways. They have alway bought it.



In the forklift side of it, the "CAT" forklifts of the 80's were built by Daewoo (Korea) and from the 90's to present by Mitsubishi (Japan). "Cat" is over-rated and over-priced. You can get much better equipment from other manufacturers for much less money, just because you are not paying for the "prestige" of the "CAT" name.

In the engine business, Cummins is ahead of the game. Cat BRAGGED about its "ACERT" emissions system just a couple years ago. While they were blowing smoke up everyone's arse, Cummins, Mercedes, Detroit and others were actually getting things done. I have no sympathy for the over rated CAT folks. In the off-road market, Cummins and John Deere have it right. Again, CAT buys its small off-road engines from Mitsubishi and (I have heard) Perkins.
 
Well i drive an 07 pete with an accert 625, denutted to a 475 and my 500 detroit i had before would walk this thing all day long, it is a slug(denutted) but if you open her upto 625 fuel mpgs go up and it will pull like a pre-emission 550(which it basically is), it is sad to see them go, CUMMINS here we come!!!!
 
I've only driven a few Cats in Class 8 trucks, and I will concede that they have 7-800K mi, so that could have been a factor, but I have never driven a Cummins with less than that, either. The last 400 Cat I drove wouldnt pull with a 330 Cummins. Going up the hill ~mile 82 on I55 in MO, I dropped 2 gears with a 12 or 15yd dump truck full of asphalt, no trailer. I'd hate to have driven cross country with it. The old 290s I drove with 80K+ GCVW would have pulled that hill the same.



My male genetic donor had (may still have it- havent talked to him since 02) a 3406E 550hp Cat (2000 or so model) in a KW that he liked. Fuel economy wasnt anything to brag about- 4. 5-5mpg average. Once in a while he'd break into the mid 5s. Dont think he ever saw 6, and certainly never the 7 that another guy I know got with his hopped up 444.



Daniel
 
It seems totally WRONG to me (and I'm not a trucker) that in 2010 and beyond, one will not be able to spec a Pete with a Cat. That's just about unfathomable. My Dad bought a 379 with a 3176 (IIRC) and it's a totally different animal (more like beast) compared to the screaming 6V92TA he had in the IH2575 before. Plus, it sounds like a REAL diesel truck engine, and not a screaming Jimmie.
 
I agree with AKaiser. That is just not believeable that after 2010 you won't be able to get a Pete with a Cat motor in it. The other unbelieveable thing is that cat won't make an on-highway engine after 2010! What are they going to do? A lot of Cat mechanics and shops are going to close as vehicles slowly get retired.
 
we can all thank the morons, liberals, and neo-nazi environmentalists that we elected to Congress for this and many other messes (housing, worthless dollar, dependance on foreign oil, etc etc) these guys haven`t seen the light of day for so long because their heads are so far implanted up their a**es all these restrictions on our industries contribute to our decline while countries like China, India, and oil producing countries are rolling in riches will we ever learn?
 
we can all thank the morons, liberals, and neo-nazi environmentalists that we elected to Congress for this and many other messes (housing, worthless dollar, dependance on foreign oil, etc etc) these guys haven`t seen the light of day for so long because their heads are so far implanted up their a**es all these restrictions on our industries contribute to our decline while countries like China, India, and oil producing countries are rolling in riches will we ever learn?



dmclean,



Amen. Couldn't agree more.



YUP - absolutely!
 
Is it possible that Gary and Harvey agree on something?!:eek: No offense, but sometimes it's like watching that movie Grumpy Old Men. :D:-laf
 
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