This Week:
- 2001
Chrysler PT Cruiser Wins Motor Trend's Car of the Year
. - The new M3 convertible - BMW M performance plus open-air pleasure
-
Ford Motor Company To Donate $5 Million To Earthwatch Institute
. - 2001
Jeep® Grand Cherokee Wins Petersen's 4-Wheel & Off-Road "4x4
of the Year"
. - 100
million DM investment, 100 new jobs and extra shifts at BMW's Berlin
Plant, 30 additional apprenticeships by 2003
. - Dana Corporations Spicer Driveshaft Division Earns Malcolm Baldrige National Quality Award / Becomes Danas Second Operation to Receive Honor
.
© 1998
- 2000 Copyright &
Disclaimer
Automotive Intelligence,
www.autointell.com
All Rights Reserved .
For questions please contact
editor@autointell.com
News of November 28, 2000
DaimlerChrysler
and Caterpillar to form global alliance
Agreement
provides framework to join powerful worldwide brands
Stuttgart/Peoria,
Ill. – Caterpillar Inc. and the commercial vehicle division of
DaimlerChrysler AG have agreed to form a 50/50 global alliance to develop,
manufacture, market and distribute medium-duty engines, fuel systems and
other powertrain components to serve the needs of third-party customers
and for use in their own products. The agreement, signed yesterday,
provides the framework for a number of joint ventures, supply agreements
and cooperative projects, subject to the consent of U.S. and European
regulators.
In
a joint announcement, Caterpillar Chairman and Chief Executive Officer
Glen Barton said, "We are very excited about this partnership. Our
worldwide engine business is a major driver of Caterpillar’s growth, and
with today’s announcement, we are making that business stronger than
ever."
Jürgen
Schrempp, DaimlerChrysler’s Chairman and Chief Executive Officer,
observed that, "This alliance will bring together legendary
engineering capabilities and long traditions of manufacturing excellence
to benefit not only our customers, but our employees and shareholders as
well."
"This
is a unique opportunity to create a premiere, global engine and fuel
systems producer with the size and resources needed for long-term success
in an increasingly demanding marketplace," stated Caterpillar Group
President Richard Thompson, who leads the company’s worldwide engine
business. "The customers of both our companies will benefit from the
shared expertise and efficiencies of scale we will apply to the task of
increasing product value while lowering costs."
Dieter
Zetsche, president/CEO of Chrysler Group and former head of
DaimlerChrysler’s commercial vehicle division, said, "This alliance
is a culmination of a unique vision – the world’s leading commercial
vehicle manufacturer joining forces with the world’s leading
manufacturer of diesel engines and off-highway equipment. Our companies
are an ideal strategic fit, with strengths and capabilities that
complement each other superbly."
According
to the framework agreement, upon regulatory approval the alliance will
create:
A
medium-duty engine joint venture that will develop, manufacture and market
current and future medium-duty engines and parts for sale to third-party
customers and to DaimlerChrysler and Caterpillar for use in their own
products. The sales volume of this joint venture is expected to grow
significantly by mid-decade from a level of about US$2 billion for the
combined parent companies in 2000.
A
fuel systems joint venture that will develop, manufacture and market
current and advanced technology fuel systems to third-party customers and
for use by the parent companies. The sales volume of this joint venture is
expected nearly to triple by mid-decade from a level of about US$600
million for the combined parent companies in 2000.
Research
and engineering cooperation in such key areas as combustion technology,
electronics, air handling systems, exhaust aftertreatment and materials
technology. The goal of the two companies is to enable their engines to
meet increasingly demanding customer and regulatory requirements for noise
and emissions control. These leading technology engines will be sold to
third parties and incorporated into Caterpillar’s and
DaimlerChrysler’s own products.
Combined
purchasing volumes that will focus on delivering the procurement cost
synergies created by the various elements of the alliance.
The
medium-duty engine joint venture will include Caterpillar’s U.S.
facilities in Greenville, South Carolina, and its operations in
Peterborough, UK. DaimlerChrysler will contribute its Sao Paulo, Brazil,
medium-duty engines facility. DaimlerChrysler’s Mannheim, Germany,
facility, both parents’ engine remanufacturing facilities, and certain
operations in Caterpillar’s Mossville, Illinois, facility and in its
Gosselies, Belgium, facilities, will contribute as contract manufacturers
to the joint venture. Both companies’ medium-duty
engineering/development resources and related intellectual property also
will become part of the venture.
The
fuel systems joint venture will include Caterpillar’s U.S. facilities in
Pontiac, Illinois, and in Jefferson and Thomasville, Georgia, as well as
its remanufacturing facility in Nuevo Laredo, Mexico. DaimlerChrysler’s
Glatten, Wolfratshausen, and Rellingen facilities in Germany, and its U.S.
remanufacturing facility in Grand Rapids, Michigan, will participate in
the venture.
In
addition, the two partners reached agreement for Caterpillar to continue
to supply heavy-duty 10 - 16 liter engines for use in Freightliner
companies’ trucks.
A
founding principle of the alliance is that it broadens the companies’
ability to serve the worldwide engine market. Both DaimlerChrysler and
Caterpillar emphasized that they also will remain independent global
suppliers of heavy-duty diesel engines, which are excluded from the
alliance.
(November
22, 2000)
[Homepage] [
News] [ Companies] [
Management] [ Publications]
[ Events] [ Careers]
[Services] [Discussion] [
Guestbook]
[ Search]