Caterpillar will discontinue production of its on-highway vocational trucks. Cat chose to discontinue production because of the current business climate in that market, the company reports.
Cat launched its first vocational truck in the North American market in 2011, and last year, the company announced its intention to begin independently designing and manufacturing its vocational truck products at the Caterpillar facility 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,” says 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.”
The discontinued production of on-highway vocational trucks will affect about 70 employees, the company reports. The reductions will begin in March.
