Industryweek 10473 Caterpillar 1

Caterpillar to End Production of On-Highway Vocational Trucks

Feb. 29, 2016
The closure of the line will result in the elimination of  70 jobs.

Caterpillar Inc. (IW 1000/71) announced on February 26 that it will discontinue production of its on-highway vocational trucks due to the “current business climate in the truck industry.”

The company said this decision is in line with its ongoing restructuring to align its businesses with existing conditions.

The closure of the line will result in the elimination of  70 jobs.

“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.”

While the company will no longer take new orders, it will support the trucks currently on the road.  

Caterpillar launched its first vocational truck in the North American market in 2011, working with Navistar on the products’ design and build. Last year, the company announced its intention to begin independently designing and manufacturing its vocational truck products at the Caterpillar plant in Victoria, Texas.

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