Cat Announces Tier 4 Equipment Migration Solution

March 4, 2014

Caterpillar announced its strategy for customers selling used Tier 4-Interim products into lesser-regulated countries and for customers purchasing used Tier 4-Interim products for operation in lesser-regulated countries, where prevailing fuel quality and fuel sulfur content vary. Based on testing, analysis and field validation, Caterpillar has determined that Cat Tier 4-Interim engine systems between 209 and 1,200 hp (156-895 kW) will not require any modification to operate in lesser-regulated countries. Displacement of these engines ranges from 7 to 32 liters.

For Cat Tier 4-Interim engines less than 209 hp (156 kW), the company will offer authorized modification processes that remove after-treatment systems from machines and commercial engine configurations, enabling operation in lesser-regulated countries. Modification processes, which include decertification, will be made available to customers in lesser-regulated countries exclusively through local Cat dealers beginning in 2014. Caterpillar anticipates both the modified engine systems and unmodified engine systems will meet used-equipment customers’ expectations for operation in the majority of potential lesser-regulated export destinations.

“Tier 4 used equipment migration is a complex issue,” said Ramin Younessi, vice president, Industrial Power Systems Division. “Because Caterpillar serves customers in all markets, we develop products to meet the needs of customers in all types of regulatory environments. For example, all non-road equipment operated in the United States, Canada, Europe and Japan must operate on ultra-low-sulfur diesel fuel."

Since Caterpillar began introducing Tier 4 products in February 2011, the field population has grown rapidly to more than 82,000 products operating in North America, Europe, Japan, and Australia. These products have amassed almost 42 million operating hours, says Caterpillar, with excellent reliability and fuel efficiency—creating interest among used equipment purchasers. According to Younessi, a key consideration for Caterpillar in developing its strategy for Tier 4 migration was to help ensure that customers maintain the resale value of their used equipment. This gives them options to sell in new markets, including lesser-regulated countries, he says.

“With the migration strategy,” said Younessi, “we’re looking forward, ahead of the Tier 4-Interim products that are already finding their way overseas to lesser-regulated countries. Tier 4-Final products won’t be far behind the Interim products, which is why the strategy we’ve developed focuses on a solution for today’s customers—and for future customers.”

Beginning with Cat dealers in locations Caterpillar has identified as higher probability recipients of used Tier 4 equipment, the company is preparing dealers to support the migration of used equipment to lesser regulated countries. These dealers will have access to service training, parts stock, service tooling, and product information, including detailed information on specific product availability.