Will a key customer run Cat off the road? Paccar to start making its own truck engines.(News)

From: Crain's Chicago Business | Date: March 12, 2007| Author: | Copyright information

Byline: BOB TITA

One of Caterpillar Inc.'s largest customers is about to become a competitor.

Paccar Inc., the nation's second-largest maker of heavy-duty trucks and the largest buyer of Caterpillar truck engines, is building an engine factory of its own. Once it's up and running in 2009, Paccar customers will have a choice: Have your Kenworth or Peterbilt truck made with a Cat or a Cummins Inc. engine, as they are now, or go with a Paccar-built one.

That move follows a decision by Navistar International Corp., also a Cat engine customer, to start offering its own ...

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