World leaders in 50:50 global engine alliance
By Andy Collings
CATERPILLAR and the commercial division of DaimlerChrysler have formed a 50:50 global alliance to develop, manufacture, market and distribute medium-duty engines for sale to third party customers and for use within the companies own vehicles.
In a joint announcement, Caterpillars group president Richard Thompson said that he believed the alliance to be an opportunity to create a premiere, global engine and fuel systems producer having the size and resources needed for long term success in an increasingly demanding market-place.
Savings will come from co-operation on research and engineering and through common purchasing.
• DaimlerChrysler is the worlds leading manufacturer of commercial vehicles with brands including Mercedes-Benz, Freightliner, Sterling and Western Star. In 1999 the companys commercial division is reported to have achieved revenues of $26.9bn.
• Caterpillar is the worlds leading manufacturer of construction equipment, diesel and natural gas engines, and industrial gas turbines. Based at Illinois, 1999 sales and revenues were posted as $19.7bn. *