Caterpillar Inc. and Shaanxi Fast Gear Co., Ltd. have announced a joint venture to manufacture drivetrain systems and other components for Caterpillar machinery, as well as a line of on-highway automatic transmissions.
Caterpillar would be a 45% stakeholder in the joint venture. Fast Gear, which is owned in part by Weichai Power Co., Ltd. would have 51% and Shaanxi Fast Auto Drive Group Co., Ltd. would hold a 4% stake.
In addition to the production of Caterpillar machine components, by partnering with Fast Gear, the joint venture will build upon the existing Cat CX series on-highway transmission product line to expand globally. The joint venture, which is pending appropriate regulatory approvals in China, will provide CX series on-highway transmissions to both Caterpillar and Fast Gear for global distribution. The CX21 automatic was recently announced as the transmission for Cat’s newly introduced CT660 work truck line.
"This joint venture continues the Caterpillar strategy to develop partnerships with leading Chinese companies as we deploy our comprehensive business model in China. It will provide Caterpillar with competitive drivetrain components and systems as well as an Asian source for our CX28 and CX31 transmissions," said Hans Haefeli, Caterpillar vice president with responsibility for the Advanced Components and Systems Division.
Source: Diesel Progress Online