Less than a year after ending its partnership with Navistar and vowing to build its own line of trucks, Caterpillar announced today that they will cease production of on-highway vocational trucks entirely.
Caterpillar Will Immediately Cease Taking Truck Orders
The company says that they will immediately stop taking orders for CT660, CT680 and CT681 trucks, but they will honor orders that have already been sent. They also say that they will continue to support existing Caterpillar trucks.
Caterpillar officials say that they made the decision based on the current trucking market and careful analysis of their own business.
Around 70 jobs will be cut, with layoffs starting in March and continuing gradually.
Planned Transition From Mexico To Texas Manufacturing Plant Will Not Happen
Caterpillar launched its vocational truck line with Navistar in 2011. Seven months ago, they discontinued the partnership with Navistar with the intention of taking more control over the development and design of their trucks. They were planning on moving the truck manufacturing operation from Mexico to a plant in Victoria, Texas, but they had not yet made the transition. “This decision allows us to exit this business before the transition occurs, ” said Ramin Younessi, vice president with responsibility for Caterpillar’s Industrial Power Systems Division.
Caterpillar has already cut 5,000 jobs and shut down several plants in an attempt to stay afloat amid tough global economic conditions.