Caterpillar has ended its truck manufacturing contract with Navistar.
The off-road vehicle giant has announced that it will begin designing and manufacturing its own trucks in its plant in Victoria, Texas.
Navistar has built CAT Trucks in its Escobedo, Mexico plant since 2011 when CAT first revealed its 'vocational' products. These have included the CT660, starting in the North American market, followed by the CT681 in 2014 and the CT680 in 2015. 'Glider-kit' versions of the CT660 have also been built. Navistar has, until now, been involved in both design and production.
In-house production of Caterpillar trucks will begin in the first half of 2016, with the transition process beginning immediately. Chris Chadwick, Caterpillar's director of the Global On-Highway Truck Group, stated: "As we look to future launches of new truck models, this updated strategy will better position us to help provide our customers with the best products and services for this market. Caterpillar continues to drive the design phase of all models, both current and planned."
The company reassured owners that Caterpillar dealers will continue to sell and support the existing line of CAT vocational trucks.