Improved fourth-quarter demand for Caterpillar's truck engines means a reduction in plant shutdowns and employee layoffs, officials at the Peoria, Ill. manufacturer announced Friday.
The impacted engine and fuel systems facilities are located in Mossville, Ill., Pontiac, Ill., Jefferson, Ga., and Thomasville, Ga. The revised schedules mean that some employees will not face layoffs at all, while the majority will experience shorter periods of layoff.
The truck engine market continues to be extremely volatile following the implementation of new emissions regulations by the U.S. Environmental Protection Agency on Oct. 1. While it is possible that some manufacturing shutdowns will occur in the first quarter of next year, it is too soon to speculate on the number or the extent of those shutdowns, the company said. These revised schedules will not materially impact Caterpillar's 2002 financial results.
"While the North American trucking industry has experienced a significant drop in post-Oct. 1, 2002 sales, our customers continue to demonstrate extremely high confidence in the reliability and proven technology of Cat truck engines," said Richard L. Thompson, Caterpillar group president with responsibility for the company's engine business. "We are seeing strong market acceptance for our new low-emissions engine models.
"The real issue facing the trucking industry is the availability of engines that meet EPA emissions levels -- without sacrificing engine performance, reliability or fuel efficiency," he said. "Caterpillar, relying on our breakthrough ACERT technology, is extremely well positioned to meet both our customer needs and clean air goals."
Caterpillar's annual worldwide truck engine sales have grown from 56,000 units in 1990 to an anticipated level of more than 100,000 units in 2002. Caterpillar is one of the leading manufacturers and suppliers of truck engines in the combined medium and heavy-duty category in North America.
The firm had 2001 sales and revenues of $20.45 billion.
The impacted engine and fuel systems facilities are located in Mossville, Ill., Pontiac, Ill., Jefferson, Ga., and Thomasville, Ga. The revised schedules mean that some employees will not face layoffs at all, while the majority will experience shorter periods of layoff.
The truck engine market continues to be extremely volatile following the implementation of new emissions regulations by the U.S. Environmental Protection Agency on Oct. 1. While it is possible that some manufacturing shutdowns will occur in the first quarter of next year, it is too soon to speculate on the number or the extent of those shutdowns, the company said. These revised schedules will not materially impact Caterpillar's 2002 financial results.
"While the North American trucking industry has experienced a significant drop in post-Oct. 1, 2002 sales, our customers continue to demonstrate extremely high confidence in the reliability and proven technology of Cat truck engines," said Richard L. Thompson, Caterpillar group president with responsibility for the company's engine business. "We are seeing strong market acceptance for our new low-emissions engine models.
"The real issue facing the trucking industry is the availability of engines that meet EPA emissions levels -- without sacrificing engine performance, reliability or fuel efficiency," he said. "Caterpillar, relying on our breakthrough ACERT technology, is extremely well positioned to meet both our customer needs and clean air goals."
Caterpillar's annual worldwide truck engine sales have grown from 56,000 units in 1990 to an anticipated level of more than 100,000 units in 2002. Caterpillar is one of the leading manufacturers and suppliers of truck engines in the combined medium and heavy-duty category in North America.
The firm had 2001 sales and revenues of $20.45 billion.
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