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Caterpillar to End Cat Truck Program

February 26, 2016

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Cat introduced its CT-680 axle-back vocational truck in 2011, and subsequently added two axle-forward versions. Photo: Tom Berg
Cat introduced its CT-680 axle-back vocational truck in 2011, and subsequently added two axle-forward versions. Photo: Tom Berg

Caterpillar Inc. says it will discontinue production of its Cat Truck on-highway vocational trucks, blaming "the current business climate in the truck industry" for its withdrawal from the market.

“This is also in line with the company's ongoing restructuring to align its businesses with existing conditions,” the company said in a statement issued today. Those previously announced moves include personnel layoffs and cutbacks in production of its earth moving and material handling equipment.

“As a result of this action, the company will cease taking new orders for vocational trucks, although Caterpillar remains committed to existing truck customers and will support the existing trucks currently on the road,” the company said.

Caterpillar launched its first CT vocational truck in the North American market in 2011, working with Navistar on the product's design and build. It was based on the International PayStar and built under contract by Navistar, and now includes three variants.

Last year, Caterpillar announced its intention to begin independently designing and manufacturing its on-road vocational truck products at a plant in Victoria, Texas. That was to phase in this year. 

Cat Trucks, designated CT, are premium products based on Navistar International's PayStar and use a Navistar-built 12.4-liter diesel. They are assembled at a Navistar plant in Saltillo, Mexico. CT sales volume remains low, annually totaling 1,100 to 1,200 units, a Navistar spokesman said last year. 

Navistar meanwhile introduced an upscale version of its PayStar vocational truck, called HX, which resembles and would have competed with the Cat Truck series.

"Remaining a viable competitor in this market would require significant additional investment to develop and launch a complete portfolio of trucks, and upon an updated review, we determined there was not a sufficient market opportunity to justify the investment," said Ramin Younessi, vice president of Caterpillar's Industrial Power Systems Division.

"We have not yet started truck production in Victoria, and this decision allows us to exit this business before the transition occurs."

Canceling the CT program will impact approximately 70 positions, Cat said. The reductions will begin in March and will take place over a period of time.  

Comments

  1. 1. WW Laidback [ February 26, 2016 @ 08:12AM ]

    A dumb ass idea from the get go. How do educated people make such mistakes, and who is in charge that allows these kinds of mistakes to get carried out.

  2. 2. Keith [ February 26, 2016 @ 08:12AM ]

    I think if cat allowed truck dealers to sell their truck it would have taken off

    its a great truck and im sorry to see cat stopping production.

  3. 3. Larry [ February 26, 2016 @ 09:21AM ]

    Too bad, if they had a Cat engine and larger dealer base they could have been a huge success. But with the epa roadblocks and initial problems, almost doomed from the start.

  4. 4. Peter Souza [ February 26, 2016 @ 10:17AM ]

    Cat's on-highway demise began with EPA2007 and their exit from the on-highway engine market. to think they could sneak back in and win over clients that historically might have purchased Cat engines is silly. EPA07 was tough on everyone, but the strongest prevailed.

  5. 5. Mike [ February 26, 2016 @ 10:17AM ]

    First there is no money let in our economy. In NY there is nothing going on and the vehicles are 70% over priced. Until some of the big company CEO get off their asses an tell the government to go to hell with out of control rules and regulations there will be no economy. We don't need pretty or glitz we need working equipment that we can repair ourselves and depend on. In my company I need equipment that can respond on call. Not 2 weeks to get it in for repairs.

  6. 6. Jeff Sharkus [ February 26, 2016 @ 03:42PM ]

    I have the only CT660 Rolloff Truck (Galbriefh System) in Delaware. I love this Dang Truck!! I upgraded from a Mack Granite 2005 (American Roll off System) with 360,000 miles backed up by an Allison Automatic. The Mack was an awesome truck for rolloff duty. Upgrading was an unknown. Wondering if I would be as efficient as I was in the Mack. After about a month, there was no going back to the Mack!!! The CT 660 with its Automatic Tranny is a PLEASURE TO WORK 12 HOUR DAYS!! It rides like a Dang Lincoln Mark V . The Power (430hp) loaded or empty is seamless. I have 14,900 miles on her now. It must be the "Charmer" suspension that keeps me from bouncing around inside the cab. At least that's what some old timer mechanic told me it was called. I have had some heavy loads, prolly pushing over 80,000lbs ( without a drop axle). The Rig just never struggled with that kind of weight. Its hard to get me in one of our older Mack dump trucks to haul stone. I kind of Beg my Boss to let me use the Cat 660 Rolloff. I am disappointed to hear it's the end for Cat Trucks. I know for sure that the born & raised Communist that resides in Our WhiteHouse, is mostly responsible for this over regulated , slowest recovering in history, Economy!!! Hopefully one day in the near future, True Hard working Americans will take back this Great Nation from the Communist/Socialist Scum !! Until that day , I will be Locked n Loaded n Ready, and Driving My Cat CT660 Rolloff into the sunset, every day.(except Saturdays). Sorry to see ya Go Cat Trucks!! I'm Glad ya gave it Go !!

  7. 7. Justin [ February 26, 2016 @ 06:30PM ]

    If I only had a heart! A real,honest to goodness CAT engine that is.
    Navistar's all-EGR engine debacle surely hurt CAT too.

  8. 8. Andoman [ February 27, 2016 @ 08:34AM ]

    Rebranded garbage never makes it long. This is very different from team effort products like hitachi/ Deere or numerous others. Cat tried taking a cheap truck that they could attempt to mark up because of the branding. At the end of the day you ended up with an international turd with a Cat sticker on it. This doesn't even take into account the fact that Cat's service has some how managed to go from best in the industry to abysmal in a short 10 to 15 year period. Now they can't figure out why they're losing market share to everyone under the sun and are slashing job to make up for it. You watch, they will pull most of their production out of the USA and replace them with ikea assemble foreign junk factories so the majority of the production can happen in China/Mexico yet retain the "assembled in the USA" sticker on the machine.

  9. 9. Tony J. [ February 27, 2016 @ 05:18PM ]

    Bad idea from the very start, and personally I had a hunch that CAT would eventually discontinue manufactoring their vocational truck line. It's sad because it will definitely impact the assembly workers! Good try though!

  10. 10. Rick [ February 28, 2016 @ 09:56AM ]

    There is a lot not being said.

    How much does International still owe CAT from the HEUI fuel system settlement?

    When will International get rid of the HEUI system?

    Why is international stock starting to move?

    I agree that CAT lost their way after EPA07. The cost of compliance has become so high that everyone will be certifying their own engines only.

    Cummins?

  11. 11. Dave Dubois [ February 28, 2016 @ 02:18PM ]

    Cummins put Cat out of the onhighway engine business and their own managers and VP just blew 500 million dollars to prove they are stupid

  12. 12. Bob [ February 28, 2016 @ 08:07PM ]

    You have to wonder...How can an iconic manufacturer screw up so badly on EPA 2007 truck engines, after screwing up on 2002 engines, or whatever year it was. Truck buyers bought and ran ACERT engines and their experiences were pretty much negative. So what does Cat do? Stick with a poor EPA answer, and become the laughing stock of the truck business with an emission system that had a SPARK PLUG in the stack.
    If it worked,, OK, but it did not work. So get out of the truck engine business. Let it go? No let's partner up with the next biggest joke I in the truck industry - Navistar! Put a weird hood in front of a Paystar cab, put the world's worst 13 liter engine, and a truly desperate 15 liter in the truck,
    ...I'm tired of typing. This will be a classic story of corporate stupidity, and what makes it worse is that it played out over so many years with Cat hubris apparently preventing honest and intelligent decision-making.

  13. 13. Robert [ February 29, 2016 @ 04:32AM ]

    Well, it figures they would do this.
    They wrecked the truck engine market.
    May as well put he icing on the cake. They sucked at building the last gen truck engines mayvas well go down in flames.
    I really do not think they were serious.
    A company of there size would have been balls out forward not this BS. let's dable at truck building. I honestly think it is time Cat start taking care of the people in the industry that they have screwed over. Instead of this pipe dream. Your venture into truck building was a dope smoking nightmare. You can't hang a wreath on a turd and call it a super turd.
    Thank God or Buda or whom ever it is you worship out here that these trucks didn't get up and going. It would have just been more of the same crap from CAT.
    Good decision CAT. Let Cummins fix your problem.

  14. 14. Shad [ March 03, 2016 @ 05:19AM ]

    I made the mistake of purchasing a CT660 with a Hydrovac mounted on the back. I also spent the extra money for the gold star warranty. I purchased the truck because of the CAT name, thinking I was getting the best. I expected a solid truck and an asset that would hold its value. Instead I got an international engine, non stop wiring harness problems, computer issues and exhaust burn off problems. The first year I had the truck it was in the shop 60 to 90 days. I'm a small business owner and this truck has hurt my business. It has cost me around 150k - 200k in lost revenue. Some one please start a class action lawsuit. I would be one of the first on board.

  15. 15. Junty [ March 03, 2016 @ 08:06AM ]

    Global class eight truck sales are all in the toilet. The first reason is peak debt. Second, severe over regulation. There isn't an engine manufacturer capable of compliance to EPA standards without resorting to inane scrubber add on systems. Adding costs and unproven sub systems to the equation. How about all the gimmick fees now so prevalent in interstate trucking? Roadside checkpoints for "saftey".

    This economic downturn or new normal is unlike anything before in the history of the world. Complex systems will default to less complex. I raise my glass to the honest hard working truckers!

    As our economy continues to transform to a service economy fewer trucks will be needed. I believe many trucking companies will hang on to the pre particulate trap engine platforms as long as possible.

  16. 16. Edward Harold Butler [ March 05, 2016 @ 08:16AM ]

    Caterpillar to End Cat Truck Program is sad, True.
    But they got in tacked with the very wrong bunch of international Trucks and should of went with a Western Star Trucks or Kenworth Trucks or both.
    There are millions and millions of truckers, owner operators and fleet managers looking for a very reliable, efficient and powerful CAT engine to be put back on the market.
    It is not a want but a very necessary need of demand of reliable, efficient and powerful engines to be put back in the trucks where they rightfully belong.
    Heavy Trucks are heavy equipment and for that, a very good reason to use a reliable, efficient and powerful engines made for heavy equipment.
    Hopefully CAT will come to their senses and wake up to that fact.
    We truckers, owner operators and fleet managers are looking forward to the new CAT engines when they come out.
    Time to wake up CAT and getter done with a new CAT Heavy Truck engines.

  17. 17. Brion Hackbarth [ March 14, 2016 @ 09:38AM ]

    Everyone, quit attacking International about CAT's failure! This market is saturated and why CAT tried to venture back in was beyond me. This is not IH fault and never was. I am sick and tired of hearing about how International is responsible for everyone's ailments. If anyone is gonna point fingers, point them at the direction of the Gov't! They are fubarring everyone with these friggin regs.

 

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