Cummins to sole supply Class 8 engines to Navistar

Caterpillar bows out of the business

by Tom Stundza -- Purchasing, 6/18/2008 11:46:00 AM

Navistar International has extended for three years a purchasing agreement with Cummins, which now will provide all the diesel engines for use in Navistar's big “Class 8” on-highway trucks through 2013. Cummins has been one of two providers of such big diesels to Navistar, but Caterpillar has announced it no longer will provide Class 8 engines in the U.S. market.

In 2007, Caterpillar provided about 25% of the Class 8 engines used in Navistar trucks, with Cummins supplying the rest. The Chicago Tribune says Caterpillar's decision to exit the U.S. market for Class 8 engines reflects a number of factors, including new clear-air regulations that are slated to take effect for trucks in 2010; meeting those low-emission standards would have required Caterpillar to make substantial development costs.