Caterpillar, DaimlerChrysler Unit in Joint Venture
Engine and equipment manufacturer
Caterpillar
(CAT) - Get Caterpillar Inc. Report
and the commercial vehicle unit of
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DaimlerChrysler
(DCX)
have agreed to jointly develop medium-duty engines, fuel systems and other powertrain components.
The companies said Wednesday the equal partnership deal, signed yesterday, provides the framework for a number of joint ventures, supply agreements and cooperative projects, and is awaiting the consent of U.S. and European regulators.
The medium-duty engine joint venture is expected to generate sales that will grow "significantly" from about $2 billion for the combined parent companies in 2000. Sales from the fuel systems joint venture are expected to nearly triple by mid-decade from a level of about $600 million for the combined companies in 2000. In addition, Peoria, Ill.-based Caterpillar will continue to supply heavy-duty 10-liter to 16-liter engines for DaimlerChrysler's Freightliner companies' trucks.
