Cat trucks will still be supplied to Australia

Cat Trucks will still be supplied to the Australian market through Navistar Auspac.
Cat Trucks will still be supplied to the Australian market through Navistar Auspac. Carly Morrissey

UPDATE: CAT Trucks will continue to be sold in Australia as normal despite the announcement that the product will no longer be produced for north America.

Director, Sales, Marketing & Business Development for Navistar Auspac, Glen Sharman confirmed the Caterpillar discontinuation announcement was only for the North American business.
"It should be outlined from the start that these releases from Caterpillar are wholly and solely focused on North American business where they sell and distribute Vocational product - this is very different to the on-highway models and product that is sold and services here in Australia," he said.

Navistar will continue to supply Cat Trucks to the Australian market utilising their factories in north and south America.


EARLIER: CATERPILLAR Inc announced on Friday that they would discontinue production of on-highway vocational trucks.

In making the announcement Caterpillar cited tough times as their reason.

"Based on the current business climate in the truck industry and a thorough evaluation of the business, the company decided it would withdraw from this market," a press release read.

"This is also in line with the company's ongoing restructuring to align its businesses with existing conditions. 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."

Caterpillar launched its first vocational truck in the North American market in 2011, working with Navistar on the design and build.

Last year the company announced its intention to begin independently designing and manufacturing its vocational truck products at the Caterpillar plant in Victoria, Texas.

"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 with responsibility for 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."

This announcement will impact about 70 positions, the reductions well begin in March and will take place over a period of time.

This announcement directly affects the north American market, however we're still not sure whether there will be ramifications for Australia.

Big Rigs has sought comment from Navistar Auspac, who supplies Cat Trucks to the Australian market.

Topics:  cat trucks production transport trucking

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