What is the main purpose of the alliance between Caterpillar and JLG Industries?

The primary goal of the alliance is to enhance Caterpillar's telehandler product line by partnering with JLG, a specialist in the field. This partnership will allow Caterpillar to offer a full range of Cat-branded telehandlers globally, leveraging JLG's manufacturing capabilities and Caterpillar's extensive dealer network and brand strength.

How will this alliance affect Caterpillar's operations in Leicester, UK?

The alliance is part of a revitalization plan for Caterpillar's Leicester operations. While telehandler production will move to JLG, the facility will continue to manufacture other key product groups such as backhoe loaders, small and compact wheel loaders, and mini hydraulic excavators. This restructuring is intended to improve competitiveness and profitability.

What happens to the existing Caterpillar telehandler products and warranties?

Caterpillar will continue to be responsible for the B-Series telehandlers and earlier models that were manufactured and sold by the company prior to the transition to JLG. This includes ongoing warranty support and service for these existing products.

When is this alliance expected to be finalized?

The definitive agreements have been signed, and the alliance is expected to close prior to the end of 2005. The closing is subject to consultation with employees and their representatives.

CAT 8-K SEC Disclosure — Oct 27, 2005

Summary

Caterpillar Inc. (CAT) announced a significant strategic alliance with JLG Industries, Inc. to globally produce and supply Caterpillar-branded telehandlers. This partnership is designed to leverage the strengths of both companies, combining Caterpillar's extensive global dealer network and brand recognition with JLG's expertise in telehandler design and manufacturing. The agreement is expected to close by the end of 2005, subject to regulatory and employee consultations. This alliance is a key component of Caterpillar's revitalization plan for its Building Construction Products (BCP) Division's European operations, particularly its Leicester, UK facility. While JLG will develop and manufacture the new Cat telehandler line-up, Caterpillar will retain responsibility for existing B-Series and earlier models, including warranty and service. The restructuring aims to enhance competitiveness and profitability at the Leicester site, which remains Caterpillar's largest manufacturing base outside the U.S. and produces other critical product lines like backhoe loaders and wheel loaders.

Key Highlights

1Global alliance formed with JLG Industries, Inc. to produce and supply Caterpillar-branded telehandlers.
2The alliance aims to leverage Caterpillar's global distribution and JLG's design/manufacturing expertise in telehandlers.
3The deal is expected to close before the end of 2005, pending necessary consultations.
4This is part of a revitalization plan for Caterpillar's Building Construction Products (BCP) Division's European operations.
5Telehandler production will shift from Caterpillar's Leicester, UK plant to JLG facilities.
6Caterpillar will continue manufacturing other product groups (backhoe loaders, wheel loaders, mini excavators) at the Leicester plant.
7Caterpillar retains responsibility for warranty and service of existing and prior telehandler models.

CATERPILLAR INC 8-K Report, Corporate Update (Oct 27, 2005)

Summary

Key Highlights

Frequently Asked Questions