PEORIA, Ill. — Caterpillar announced today it is discontinuing production of its on-highway vocational trucks.
It cited the current business climate in the truck industry and a thorough evaluation of its own business as its reasons for withdrawing from the market.
It will no longer take orders for vocational trucks, though the company says it will continue to support existing truck customers and vehicles that are currently on the road.
Cat entered the truck market in 2011 through a partnership with Navistar. That partnership came to an end last year and Navistar earlier this month released its new HX Series vocational truck, which it acknowledged was inspired by its partnership with Cat.
Caterpillar was slated to bring production of its trucks in-house at its Victoria, Texas production facility.
“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.”
About 70 jobs will be affected as a result of the move.