* Illinois - Something in the economy changed in the middle of last year
--- In August last year, Caterpillar announced that it was moving manufacturing jobs back to America from Mexico. The truck and equipment company had entered what is called the “vocational truck” business back in 2011 in a partnership with Navistar... Using its facility in Escobedo, Nuevo Leon, Navistar assembled these vocational units for Caterpillar under Caterpillar’s brand. Last year’s announcement about Texas was Cat figuring it had established enough presence in the market to take the next step and manufacture its own product... They had invested in expanding an existing facility in Victoria, Texas, and in that August press statement indicated that the first production runs would take place at some point in the first half of 2016. The promotional material suggested that it was a very serious effort. From the company’s promotional material: We didn’t mess around when we set out to develop our new line of vocational trucks… We spent hundreds of hours on the road asking customers to describe the ideal truck. Our design team rode alongside drivers and gathered input on everything from specs and comfort to visibility and performance... On February 26, Caterpillar delivered the news not that production had begun, but rather that it would never make any “vocational trucks” in Victoria or anywhere else. The company decided it was best to get out before even starting. We have not yet started truck production in Victoria. This decision allows us to exit this business before the transition occurs... That is the relevance of Caterpillar’s decision in February, as taking time, effort, and money into that new business line and then deciding instead not to bother indicates something other than a bump in the economic road. In other words, as bad as last year might have been, this year seems intent on finding out what that “something” really was or is...
(Photo: North American Cat Dealer network will be fully prepared to offer whole-truck service and sales support for) -- Peoria, ILL, USA - Investing - May 08, 2016Labels: truckmakers news USA
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