SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 14, 1997
CATERPILLAR INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-768
(Commission File Number)
37-0602744
(IRS Employer I.D. No.)
100 NE Adams Street, Peoria, Illinois
(Address of principal executive offices)
61629
(Zip Code)
Registrant's telephone number, including area code: (309) 675-1000
Item 5. Other Events
Item 5. Other Events
CATERPILLAR AND CLAAS ANNOUNCE INTENTION TO FORM LARGE AGRICULTURAL
EQUIPMENT JOINT VENTURE
Caterpillar Inc. and German-based Claas KGaA have signed a letter of
understanding to form a joint venture to market and manufacture combine
harvesters and rubber-belted ag tractors in North America and Europe.
Under terms of the understanding, a North American joint venture company will
market and eventually manufacture several models of the new Lexion line of
combine harvesters recently introduced by Claas. The combines, adapted to
meet customer requirements, will be distributed in North America as
Caterpillar products alongside the line of Challenger agricultural tractors.
A European joint venture company will market Caterpillar's series of
Challenger tractors and eventually manufacture selected models. The tractors
will be distributed in Europe as Claas products alongside its line of
harvesting equipment.
The proposed joint venture is subject to negotiating definitive agreements and
receiving applicable regulatory approvals.
"This agreement will bring together two premier manufacturers who have enjoyed
reputations for innovation and market-leading specialization in their
respective agricultural market segments," said Robert Strube, president of
Caterpillar Agricultural Products Inc.
"The agricultural equipment industry is growing steadily. One trend is toward
large farms that rely on advanced technology for maximum productivity.
Through our combined product lines and marketing channels, Caterpillar and
Claas will be better positioned to meet customer needs."
"We see this planned cooperation with Caterpillar as an important step in the
strategic development of our Group," said Eckart Kottkamp, chief executive of
the Claas Group. "As well as giving us a world-renowned partner to compete in
the North American market, it also provides us, our European distribution
partners and customers with additional opportunities in the growing high
horsepower segment of the tractor market."
Claas' Lexion line of combines, first introduced last year in Europe,
incorporates the latest in harvesting technology. During the 1996 harvest,
the combines underwent testing in North America, producing exceptional
results.
Caterpillar has expanded to six models its line of rubber-belted Challenger ag
tractors, which were first introduced in 1987. The company formed Caterpillar
Agricultural Products Inc. as a subsidiary in 1996 to put a greater focus on
the agricultural market.
Caterpillar is the world's leading manufacturer of construction and mining
equipment, natural gas engines and industrial gas turbines. It is also a
leading global supplier of diesel engines. Headquartered in Peoria, Ill., the
company posted record sales in 1996 of U.S.$16.52 billion.
Claas KGaA, based in Harsewinkel, Germany, is Europe's market leader in
combine and forage harvesters. It is also a leader in an extensive range of
balers, grass land equipment and material handlers produced in factories in
Germany, France and England. Preliminary reports estimate sales in 1996 at
about U.S. $1 billion.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CATERPILLAR INC.
By: /s/ R. Rennie Atterbury III
R. Rennie Atterbury III
Vice President
Date: February 14, 1997
