Caterpillar to reduce expenses, receives conditional certification
Caterpillar will cut expenses by $100 million throughout the last quarter of the year as it works to meet shareholder expectations as well as customer demands, the company said.
Savings will come from a variety of sources and could include some temporary shutdowns of some plants, something Caterpillar has done throughout the last few years. Reducing the use of outside contract services and temporary employees also are possibilities, spokesperson Ben Cordani said.
Also in company news, the EPA has granted Caterpillar conditional certification to sell on-highway truck engines after Oct. 1. However, its engines still will fall short of new federal emissions standards and will be subject to fines of $3,647 to $12,210 for each one sold after Oct. 1, the company said. Cat has said it will not pass the fines on to its customers.
EPA’s certification allows the sale of Cat engines in 49 states and Canada with no restrictions for customers who purchase the engines. With EPA’s decision, Cat said it expects to receive certification from the California Air Resources Board. The company said engines produced after the federal deadline will be very similar to the company’s current industry-leading engines, but with some elements of its Advanced Combustion Emissions Reduction Technology. Engines with full ACERT technology will be commercially available beginning in 2003.