Caterpillar will discontinue production of its on-highway vocational trucks. Although it will no longer take new orders, the company pledged to support existing truck customers and their trucks currently on the road.
The company said the decision to exit was made after a "thorough evaluation of the business," including the current business climate in the truck industry, and is part of its ongoing restructuring.
“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.”
Approximately 70 jobs will be "impacted," the company said, with reductions beginning next month.