DaimlerChrysler and Caterpillar to Form Global Alliance

Caterpillar Inc. and the commercial vehicle division of DaimlerChrysler AG have agreed to form a 50/50 global alliance to develop, manufacture, market and distribute medium-duty engines, fuel systems, and other powertrain components to serve the needs of third-party customers and for us in their own products. The two partners reached agreement for Caterpillar to continue to supply heavy-duty 10-16 liter engines for use in Freightliner companies' trucks. Both companies emphasized that they will remain independent global suppliers of heavy-duty diesel engines, which are excluded from the alliance.