A recently penned Memorandum of Understanding will see Caterpillar Inc. and Navistar International Corp. pursue global on-highway truck business opportunities, including development of a North American severe-service construction model, and cooperate on a variety of engine platforms.

Caterpillar is targeting a 2010 introduction of a Cat-branded, heavy-duty truck for severe-service applications, potentially modeled after the Navistar Paystar and Workstar chassis. The companies have not finalized design and production details, although Navistar's Severe Service Center in Garland, Texas, would appear to be a strong candidate location from which to launch the Cat nameplate vehicle.

“This new truck will incorporate the quality of Caterpillar's construction and mining machines and provide construction customers a one-stop solution,” notes Caterpillar Group President Douglas Oberhelman. Caterpillar has also determined it will not supply EPA 2010-compliant engines to truck and other on-highway original equipment manufacturers, he adds, but the company and its dealers will continue to provide product support and service beyond 2010 for all Caterpillar on-highway engines, regardless of truck brand. With ‘off-highway’ comprising nearly 90 percent of the company's engine business, Caterpillar will continue to concentrate on power for its own construction and mining equipment, plus opportunities in petroleum, marine, electric power generation and industrial markets.