Cat Medium Duty truck in the works?

[dgl24087]

Cat-Navistar Deal In The Works?​

Crain's Chicago Business is reporting that Caterpillar Inc. and Navistar International Corp. are discussing a joint venture that would boost Cat's sagging truck-engine sales and ease Navistar's pain from an expected loss of Ford Motor Co.'s business.
A person with knowledge of the talks confirms the companies are negotiating a truck-making partnership. In such a combination, Warrenville-based Navistar would likely build Cat-branded trucks with engines supplied by the Peoria-based equipment maker, industry analysts say, the article said.
Caterpillar declined to comment on the article.
Cat has hinted that something on the truck side is in the works starting with a comment in early March from CEO Jim Owens at a Reuters conference that Cat was not planning to exit the truck engine business.
A Cat-Navistar link-up of some sort was the hot rumor at ConExpo-ConAgg two weeks ago, with speculation ranging from a supply agreement in which Navistar would build Cat-branded trucks, with Cat engines (and possibly transmissions), to some sort of equity agreement between the two Illinois companies.
Owens did not deny that this was a crossroads time for Cat's truck engine business telling reporters at ConExpo, "We've got a strategic choice to make. We could exit. We could partner. We could acquire."
Asked specifically about Navistar, Owens said, "A potentially nice fit? Sure." He declined to comment further on any sort of truck deal.
The Crain's article said that in a conference call with analysts last week, Navistar CEO Daniel Ustian also declined to comment on a Cat deal, but said he was interested in forming partnerships.
Also fueling the rumor mill was the announcement in early March of the new European truck group being formed by Volkswagen acquiring majority control of Scania. Volkswagen owns 30% of Germany's MAN, which would be included in the new commercial vehicle venture. In turn, MAN has an engine agreement with Navistar.
A truck market with an increasingly smaller number of engine sales available to non-captive suppliers, as most of the remaining truck manufacturers manufacture their own engines, has also added to the speculation that Caterpillar was looking at any and all options for its truck engine business.

 

[Builder]

CAT's been talking about that for months. They don't know what they want to do, get out of the OTR business, or get IH to build chassis for them so they can stuff CAT diesels & their new transmissions in them. They even talked of trying to buy IH outright.

 

[QRTRHRS]

Tough business world these days. CAT's truck engine sales sagging that badly?

Perhaps they could spare some production capacity for a pickup sized diesel engine. I have heard that was the reason they never bothered with the light duty market?

Of course, what with fuel prices these days, no telling where that market is going?

I would think that any entry into any segment of the truck market be it class 6, 7 etc. or even 3 or 4 would have to be something really well thought out in order to succeed.

 

[Z-Michigan]

Unless they're insane, they're only looking at the commercial market. With diesel heading for $4.50 and new gas mileage standards announced today, we don't need another CXT type truck (much as I might personally like to own one, especially if it came with a free fuel card).

 

[jayhaitch]

I'm curious. Which are the most popular engines in OTR trucks? I thought CAT had a good reputation for equipment and engines.

 

[EddieWalker]

You have two choices in RV's for diesel. Cat and Cummins. There might be others, but those two are the main ones.

Cat is coming out with a new dozer that will be powered by two electric drive motors. It's called the D7E and will be available in 09 on a limited basis. They said they will save quite a bit on fuel consumption by using a smaller engine then the D7's currently have to generate the electricity needed to power the electric motors.

Maybe that technology will work it's way into the truck market?

Eddie

 

[Builder]

I'm curious. Which are the most popular engines in OTR trucks? I thought CAT had a good reputation for equipment and engines.

They do have a good reputation, but they laid an egg with the ACERT polution control system recently. Many complaints about it. Check out under the hood of an new CAT OTR truck. Looks more complex than a 6.4L Ford. Hoses, tubes & wires everywhere.

Eddie,

Years ago I used to say the most efficient trucks of the future will be built like today's diesel/electric locomotives. They'll have a motor on each wheel and a diesel engine that in an oversimplification, runs a generator and some battery storage.

Think of the possibilities. No more transmissions, driveshafts or differentials.
Each motor can drive each wheel for true 4x4 traction. Fuel consumption would go way down. Look at all the mining equipment that runs off electric motors.

A lot more research is needed in battery & motor technology, but I think this is where we're headed.

 

[EddieWalker]

Builder,

I agree totally. I read a biography about RG LeTourneau, who is one of the pioneers and inventors or modern day heavy equipment. He was either the first, or one of the firt to but a blade on a dozer. He invented just about all the components of the belly scraper and the use of electic motors to drive equipment. He said that the electric motors don't need a transmission like diesel or gas engines do. They have enough power to move a vehicle on their own. One of the selling points to the new Cat D7E besides the fuel savings is the fewer parts involved in the drivetrail. No hydraulics, fewer moving parts and less maintenance. The electric motors do it all!!!

It's just a matter of time until the auto industry gets it worked out, but I wouldn't be suprised if that's the direction they are headed. Batteries alone are not practical and cause more environemental hazards then they supposedley solve. A highly efficient diesel engine that powers a generator to run an electric motor is proven technology that's been around for decades. LeTrouneau did it back in the 60's on his belly scrapers to move more dirt then diesel engines could power at the time.

Eddie

 

[Wayne County Hose]

Builder, you are right on with the electric truck idea. The motor technology is already there. Look for an electric truck to have GPS which will read battery state of charge. If the GPS sees a hill coming up, it can start the generator to make sure of enough battery to go up. All this technology is already available, just need a company to assemble it.

 

[john_bud]

Builder, you are right on with the electric truck idea. The motor technology is already there. Look for an electric truck to have GPS which will read battery state of charge. If the GPS sees a hill coming up, it can start the generator to make sure of enough battery to go up. All this technology is already available, just need a company to assemble it.

And if you hook that GPS up with a radar detector andan internet up/down link to a real time data base you can have the truck slow down before radar traps and save the trap location to the database....


jb