Keate says Cat will hurt International sales

July 10, 2002
International Truck and Engine Corp. said today that it expects to lose sales because of Caterpillar's recently implemented engine allocation. Steve Keate, president, truck group, International, said customers have ordered new trucks spec'd with Cat engines, but that it will not have enough engines to fill those orders. Keate said the truckmaker is working to switch to Cummins engines, but added that
International Truck and Engine Corp. said today that it expects to lose sales because of Caterpillar's recently implemented engine allocation.

Steve Keate, president, truck group, International, said customers have ordered new trucks spec'd with Cat engines, but that it will not have enough engines to fill those orders. Keate said the truckmaker is working to switch to Cummins engines, but added that he expects some to refuse the offer.

"We're getting Cat engines now, we're just not getting enough," Keate said. "We're trying to manage the fallout as best we can, but we're sure we will find some instances where customers will feel they have to go elsewhere."

Keate said Caterpillar put International on allocation in early June and notified the truckmaker it couldn’t fill production needs through October.

"This put us in very difficult position with customers we made commitments to," Keate said. "We are working with Cat to get more engines and looking to other engine suppliers, especially Cummins, to make up the shortfall."

Keate said the shortage effects the entire Class 8 line – 7600, 7800, 9000 series as well as the new 5000 series equipped with the Caterpillar C10, C11, C12 and C15 engines.

International sued Cat in May over a dispute over what Keate called a binding agreement defining price. Keate said Cat wants to increase the price of engines after October, when new EPA standards go into effect.

International said Caterpillar refused to honor a pricing schedule that would have provided engines through 2006. The truckmaker also claims Caterpillar reneged on an agreement to supply engines for the model 8600 International plans to roll out in August.

"It's in everyone’s best interest to resolve as best possible," Keate said. "We’re pressing aggressively to solve it."

Keate added that International's decision to cut Detroit Diesel engines from its line still stands.

Sponsored Recommendations

Heavy-Duty Maintenance Checklist

A maintenance checklist can help ensure you hit everything necessary during an inspection. Check out our free downloadable checklist to help streamline your repairs.

Five Ways a Little Data Can Save Your Company Millions

While most trucking and logistics companies rely on cellular to keep their work fleet connected, satellite has the ability to connect anywhere and through small data transmission...

Fleet Case Study: 15% YOY Growth for ITDS

Learn how this small trucking company scaled significantly and maintained outstanding customer service without adding additional people. Sylectus TMS can automate operations and...

Unlocking Fleet Safety & Efficiency: The Managed Service Advantage

Want to boost your fleet's safety and efficiency? Tune in now to discover the power of Managed Services in optimizing your safety program, streamlining operations, and making ...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!