LAS VEGAS, Nev. — Rather than focusing on vertigal integration, truck makers should adopt a philosophy of virtual integration working as one with component manufacturers. That was the message from George Taylor, director and general manager for Global On-Highway Business at Caterpillar, at the Heavy-Duty Manufacturers Associations Heavy-Duty Dialogue 07 event in Las Vegas recently.

He said that due to the major technology development required, as well as the cost of meeting new emissions standards, cooperation between vehicle and component manufacturers is required. He suggested there are better solutions than vertical integration, and pointed out more than 60% of todays heavy-duty engines are manufactured by independent engine suppliers, proving North American customers prefer to have choices when it comes to major components.

On the subject of harmonization, Taylor said a merging of the commercial vehicle standard for emissions, safety and vehicle configuration could benefit the entire trucking industry.

Taylor also took the opportunity to address Caterpillars goal of achieving $100 billion in sales by the year 2020. The strategy involves technology innovation, product quality, product availability and consistent product support anywhere in the world, he said.