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Archive for the ‘Engines’ tag

Caterpillar in talks with Navistar to develop 15-liter truck engine

Dow Jones News Wires reports that Caterpillar and Navistar, the maker of a raft of heavy-duty trucks, are collaborating on a way-big truck engine (three times of the displacement of a hot-rod Mustang with 5.0-liter engine).

Navistar has been seeking a supplier for the large engines amid moves by its existing suppliers – including Caterpillar – to leave the sector or switch emissions technology.

Caterpillar plans to supply the 15-liter engine under Navistar’s MaxxForce brand by late 2010, according to the sources.

The heavy-equipment maker has said it plans to quit making engines for the U.S. truck market in 2010 to avoid the cost of complying with new domestic emissions standards. However, Caterpillar, Peoria, Ill., could license its existing large engine for Navistar to produce, or opt to continue making power trains under the Navistar brand.

Both companies declined to comment.

The joint venture, part of a broader truck alliance announced in mid-2008, would allow Navistar to build out its MaxxForce line of medium and heavy-duty engines without the expense of developing a 15-liter unit from scratch.

The pending deal would reduce Navistar’s reliance on Cummins Inc. (CMI), which also supplies the truck maker with 15-liter engines.

Take that, Cummins!

Highway truck engines may bring to mind visages of tough-guy truckers in CAT hats, but I’ve been told that Caterpillar never turned much of a buck on those motors. I’m much more interested in the engines that go in ocean-going vessels because Mom never let me live my dream to run off and join the merchant marine.

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Tom Mangan posted at 11:55 am January 16th, 2009 |

Greenville, S.C., officials say they weren’t told of Cat engine plant plans

The paper in Greenville, S.C, says local economic development honchos had no idea they were on the short list of finalists for the new Caterpillar engine plant to be built in Seguin, Texas. Cat received a $10 million incentive from a fund Texas set up specifically for instances where several states were competing for the same facility.

It does seem, shall we say, peculiar that Cat seems to have told the folks in Texas that Greenville was on the table but doesn’t seem to have mentioned it to, you know, the folks running the town where they might have actually built the plant.

But get this: The Austin American-Statesman says next to nobody in Seguin knew they had won the plant till Thursday’s announcement was aired.

Of course the job of local officials is to provide tax breaks and keep their yaps shut, except when asking “how high?” when told to jump, so everything is as it should be, I suppose.

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Tom Mangan posted at 11:21 pm December 19th, 2008 |

Cat moving 1,400 jobs to Texas from Illinois, South Carolina

UPDATE: Paul Gordon at the Journal Star reports on yesterday’s layoff news, etc.

The layoff is not connected with Caterpillar’s earlier announced decision to cease making on-highway truck engines, or to an announcement by the governor of Texas on Thursday that Caterpillar is going to build a small-engine plant in that state, transferring some work from Mossville, a Caterpillar spokesman said.

Naturally the UAW is skeptical, and as much as this “move 1,400 jobs somewhere else for fun and profit” vibe irks me, one thing must be said: The Texas project has been in the works for months and nobody imagined the economy would’ve turned this ugly by now. The coincidence makes Cat look like Scrooge painted yellow this morning, but hey, coincidences do happen.

(Some part of me pities the Texans who sold their souls and abandoned their pride to get this plant. Because Texans are such a prideful bunch.)


Last night’s post:

On the same day that 800-plus got pink-slip notices from the Mossville engine plant, word came out about a new engine plant Caterpillar is planning. It moves 1,400 jobs from Illinois and and South Carolina to a town east of San Antonio. From the Austin American-Statesman:

Caterpillar Inc., a heavy-equipment giant, is consolidating its assembly, paint and testing operations from Illinois and South Carolina to Seguin. On the economic development scorecard, the move counts as a win for Texas against Mexico and South Carolina, both of which were also competing for the facility.

“The location really just fits our long-term strategic plans,” said Kate Kenny, a spokeswoman for Caterpillar. “About 70 percent of the engines that will be manufactured there will be exported, and Seguin gives us great access to ports and interstates and other hubs.”

Seguin is on Interstate 10 and near Interstate 35, and it is about 30 miles northeast of San Antonio and about 50 miles south of Austin. The ports of Houston and Corpus Christi are about an equal distance away. And when construction of Texas 130 is completed, the city will mark one end of the highway.

The state’s offering is the biggest Texas Enterprise Fund investment this year. In previous years, the fund has granted $50 million to companies such as Texas Instruments. The Texas Enterprise Fund was created in 2003 at the urging of Gov. Rick Perry and was funded through the Texas Legislature in 2005 and 2007.

This item says it’ll generate $170 million in capital investment. Well, at least they’re not pouring it into credit default swaps. Next on my to-do list: see how many millions Texas will give me to move my blog headquarters to a flat above an ultra-hip Austin watering hole. I love that song about going home with the armadillo.

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Tom Mangan posted at 12:07 am December 19th, 2008 |