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Article: Caterpillar Exit From Highway Market Was Investment Decision, Analysts Say
- Article from:
- Transport Topics
- Article date:
- November 24, 2008
- Author:
CopyrightCopyright Transport Topics Publishing Group (TTPG) Nov 24, 2008. Provided by ProQuest LLC. (Hide copyright information)
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Caterpillar Inc. decided to stop making heavy-duty diesel truck engines because its executives could not justify the investment it would take to continue competing in a rapidly changing market, not because it was pushed out, analysts said.
Caterpillar, after saying in 2007 that it was working on a new engine that would satisfy 2010 federal emission standards, announced in June that it would halt production of heavy-duty highway engines after 2009.
George Taylor, Caterpillar's director of global on-highway products, told reporters in a conference call, "We see a ceiling of between 240,000 and 250,000 heavy trucks in North American, and it will be increasingly difficult to participate as an ...