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Caterpillar Inc. and DaimlerChrysler AG's commercial-vehicle division announce a partnership to produce medium-duty engines, fuel systems, and other powertrain components. The deal will create two joint ventures, one for fuel systems and another for medium-duty engines, and is expected to be finalized in the second quarter. This collaboration is expected to increase both companies' earnings immediately. These engines are commonly found in medium-sized trucks and delivery vehicles in the United States and Europe. Roughly 2 million engines are sold globally every year, resulting in about $10 billion in sales. The two companies currently have a 10% market share of this engine market, and they anticipate significant growth in the joint engine business over the next five years. The present sales for both companies are around $2 billion.
Thursday, 23 November, 2000