Caterpillar Inc.

(NYSE: CAT), also known as "CAT", designs, manufactures, markets and sells machinery and engines and sells financial products andinsurance to customers via a worldwide dealer network.

Caterpillar is the world's largest manufacturer of construction and mining

equipment, diesel and natural gas engines and industrial gas turbines.

With more than US$70 billion

in assets, Caterpillar was ranked number one in its industry and number 44 overall in the 2009 Fortune 500. Caterpillar stock is a component of the Dow Jones Industrial Average.

Caterpillar Inc. traces its origins to the 1925 merger of the Holt Manufacturing Company and the C. L. Best Tractor Company, creating a new entity, the California based Caterpillar Tractor Company.
[3] [1] [8]


1986, the company re-organized itself as a Delaware corporation under the current name, Caterpillar Inc. Caterpillar's headquarters are located in Peoria, Illinois, United States.

In the late 1890s and early 1900s, competitors Daniel Best and Benjamin Holt individually experimented with ways to improve the traction of steam tractors used in farming California's Central Valley. [edit]Origin

of Caterpillar name

The steam tractors of the 1890s and early 1900s were extremely heavy, sometimes weighing 1,000 pounds (450 kg) per horsepower, and often sank into the rich, soft earth of the San Joaquin Valley Delta farmland surrounding Stockton, California. Benjamin Holt attempted to fix the problem by increasing the size and width of the wheels up to 7.5 feet (2.3 m) tall and 6 feet (1.8 m) wide, producing a tractor 46 feet (14 m) wide. But this also made the tractors increasingly complex, expensive and difficult to maintain. Another solution considered was to lay a temporary plank road ahead of the steam tractor, but this was timeconsuming, expensive, and interfered with earthmoving. Holt thought of wrapping the planks around the wheels. He replaced the wheels on a 40 horsepower (30 kW) Holt steamer, No. 77, with a set of wooden tracks bolted to chains. On Thanksgiving Day, November 24, 1904, he successfully tested the updated machine plowing the soggydelta land of Roberts Island.

Company photographer Charles Clements was reported to have observed that the tractor and Holt seized on the metaphor. "Caterpillar it is. That's the name for it!"
[11] [10]

crawled like a caterpillar,



sources, though, attribute this name to British soldiers in July 1907.

Two years later Holt sold his first steam-

powered tractor crawlers for US$5,500. Each side featured a track frame measured 30 inches (760 mm) high by 42 inches (1,100 mm) wide and were 9 feet (2.7 m) long. The tracks were 3 inches (76 mm) by 4 inches (100 mm) redwood slats.

Holt received the first patent for a practical continuous track for use with a tractor on December 7, 1907 for his improved "Traction Engine" ("improvement in vehicles, and especially of the traction engine class; and included endless traveling platform supports upon which the engine is carried"

Move to Peoria

The company's situation worsened when artillery tractors were returned from Europe. formed by Clarence Leo Best in 1910 and Holt's primary competitor. 1910. the Holt tractor became a major artillery [21] tractor. the Holt tractor [21] became "one of the most important military vehicles of all time. Illinois. These governments. depressing prices for new equipment and Holt's unsold inventory of military tractors. [17][18] in World War I Holt's track-type tractors play a support role in World War I. [15] [14] and immediately Holt incorporated it as the Holt Caterpillar Company. which profoundly altered ground warfare tactics. although he did [13] not trademark the name Caterpillar until August 2. Holt had shipped 1. 1910. especially production of its new Best Model 60 "Tracklayer". the British War Office ordered a Holt tractor and put it through trials at Aldershot. of East Peoria.In February 16. C. [10][22] Major Ernest Swinton. Best had gained a considerable market advantage over Holt by war's end. the 60-pounder.2-inch howitzer. who later became the first executive vice president of what became Caterpillar Tractor Company. sent the tractors directly to the battlefront where the military put them to work hauling artillery and supplies.200 tractors to England. When the war ended. Military contracts formed the major part of the company's production.S. they borrowed heavily. and Mexico. Canada. The addition of a plant in the Midwest. and later the 9. Even before the U. To keep the company afloat. There Pliny met farm implement dealer Murray Baker who knew of an empty factory that had been recently built to manufacture farm implements and steam traction engines. On October 25. led by his nephew Pliny Holt. [13] Holt opened up a plant in East Peoria. sent to France as an army war correspondent. [20] Over the next four years. France and Russia for agricultural purposes. [24][25] As a result. Holt tractors were also the inspiration for the development of the British tank. despite the hefty capital needed to retool the plant. mainly used to haul medium guns like the 6-inch howitzer. [19] When World War I broke out. Baker. formally entered WWI. began operations with 12 employees. Illinois. L. The heavy-duty tractors needed by the military were unsuitable for farmers. The company struggled with the transition from wartime boom to peacetime bust. wrote to Holt headquarters in Stockton and described the plant of the bankrupt Colean Manufacturing Co. had during the war received government support enabling it to supply farmers with the smaller agricultural tractors they needed. 1909. very soon saw the potential of a [23]:116 track-laying tractor. however. Although the British later chose an English firm to build its first tanks. Holt's planned expansion to meet the military's needs was abruptly terminated. Best also assumed considerable debt to allow it to continue expansion. Best Gas Tractor Company. [edit]Use [16] Tractors were built in both Stockton and East Peoria. Pliny Holt purchased the factory. ." [edit]Post-war challenges Holt tractors had become well-known during World War I. The War Office was suitably impressed and chose it as a gun-tractor. proved so profitable that only two years later the company employed 625 people and was exporting tractors toArgentina.

Thomas A. 1920. and CAT continued to grow throughout the Great Depression of the 1930s. The facility was built under harsh winter conditions. when under the terms of the merger it was [15] moved to Peoria. where the temperature was below −25°C. and Clarence Leo Best assumed the title of [24] CEO. It was completed in 16 months and occupied in November 1999. in 1950. located near St. [27] Harry H. Caterpillar products found fame with the Seabees. Baxter began re-focusing the company towards building road construction equipment. marking the beginning of Caterpillar's development into a multinational corporation. Between 1907 and 1918. 5 Ton. Best's debt and Holt shareholders approached him about their company's financial difficulty. The 10 Ton and 5 Ton models were discontinued in 1926. Sales the first year were US$13 million. [14]:66 Both companies also faced fierce competition from the Fordson company. 1991. the financially stronger C. During the post-war construction boom. which contributed to a nationwide depression. sales climbed to US$52. and 10 Ton from the Holt Manufacturing Company's old product line and the Caterpillar 30and Caterpillar 60 from the C. the company grew at a rapid pace and launched its first venture outside the U. the 2 Ton was discontinued. Best Tractor Co. trademark and patent infringement lawsuits. Finland. to succeed Benjamin Holt. Baxter. In 1928.5 million in legal fees fighting each other in a number of contractual. Petersburg. further inhibiting sales.Both companies were adversely impacted by the transition from a wartime to a peacetime economy. Fair & Company of San Francisco had helped to finance C. [28] The new company was headquartered in San Leandro until 1930. Russia. [citation needed] . L. In April and May 1925. By 1929. On December 5.'s former product line. 71-year-old Benjamin Holt died after a month-long illness.S. The Caterpillar company consolidated its product lines. L. [edit]Caterpillar [25][26] company formed The banks who held the company's large debt forced the Holt board of directors to accept their candidate. [edit]Expansion in developing markets Caterpillar built its first Russian facility in the town of Tosno. L. Best and Holt had spent about US$1. Baxter initially cut the large tractors from the company's product line and introduced smaller models focused on the agricultural market. and remained in that role until October 1951. Fair of the bond brokerage house of Pierce. It had the first electrical substation built in the Leningrad Oblast since the Communist government was dissolved on December 26. During World War II. Caterpillar adopted the diesel engine to replace gasoline engines. who builtairfields and other facilities in the Pacific Theater of Operations. Construction Battalions of the United States Navy. When the Federal Aid Highway Act of 1921 funded a US$1 billion federal highway building program. offering only five track-type tractors: the 2 Ton. The facility construction was managed Lemminkäinen Group located in Helsinki. Best merged with the market leader Holt Caterpillar to form the Caterpillar Tractor Co. Fair recommended that the two companies should merge.8 million. Baxter had been removed as CEO earlier in 1925.

United States 1965 [31] Forklifts In 1992 became Mitsubishi Caterpillar Forklifts. a wholly owned subsidiary of Caterpillar Inc. much of Caterpillar's growth has been through acquisitions. a wholly owned subsidiary of Caterpillar Inc. [edit]Acquisitions In addition to increasing sales of its core products. 1998[35] Lucas Varity Small diesel engines Produces both Cat and . Minnesota. Perkins Limited Peterborough. The first machine is scheduled for production in March 2009. Ohio. Krupp GmbH Marine diesel engines Renamed MaK Motoren GmbH. Germany 1997[34] Fried. California. manufactures medium wheel loaders and motorgraders. Inc. Barber-Greene Co. California. manages facility construction. primarily for the Asian market. United States 1981 [32] International Harvester Company Industrial gas turbines Became Solar Turbines Incorporated. United States 1951 Traxcavators (tracked loaders) "Traxcavator" became a Cat and pipelayers brand Towmotor Corporation Mentor. including: Sortable table Company or Asset Acquired Location Date Acquired From Products Notes Trackson Milwaukee. in San Francisco. [29] [citation needed] In 2010 the company announced plans to further expand [30] production of backhoe and small wheel loaders with a new factory. People's Republic of China facility. and will continue to use the MaK brand name. Minneapolis. United States 1991[33] Paving products Renamed Caterpillar Paving Products Krupp MaK Maschinenbau GmbH Kiel. Wisconsin. URS Ausino.The $125M Caterpillar Suzhou. a joint venture 80% owned by Mitsubishi Solar Division and Turbomach Division San Diego. Caterpillar has manufactured in Brazil since 1960.

India 2000[38] Hindustan Motors Ltd. torque converters and engines Organized under Caterpillar Remanufacturing Services . South Delco Remy Carolina. Ltd. United Kingdom 2000[40] Sabre Group Ltd. Emerson Generators. Australia 2000[39] Elphinstone Pty.G. Ltd. Summerville. Marine diesel engines Renamed Caterpillar Marine Power UK.Sortable table Company or Asset Acquired Location Date Acquired From Products Notes United Kingdom Perkins branded engines Mankato. compactors and other road maintenance products Merged into Caterpillar Paving Products Wealdstone Engineering Ltd. Inc. Produces both Cat and Perkins-Sabre branded engines Bitelli SpA Minerbio. States Remanufacturer of automatic transmissions. Rushden. Earthmoving Equipment Division Chennai. Burnie. Large electrical generators F. United Kingdom 2004[42] Remanufacturer of gasoline and diesel engines Organized under Caterpillar Remanufacturing Services Williams Technologies. Underground mining equipment Acquired 50% interest in joint venture from partner Elphinstone. Kato Engineering Minnesota. Wilson Larne. Northern Ireland 1999 [37] Emerson Electric Company Asset swap. Italy 2000[41] Asphalt pavers. cold planers. United 2004[42] International Inc. Construction equipment Renamed Caterpillar India Caterpillar Elphinstone Pty. Inc. Renamed Caterpillar Underground Mining Sabre Engines Ltd. Produces both Cat acquired Kato Engineering and Olympian branded from Caterpillar as part of generators transaction. United States 1998[36] Rockwell Automation.

MGE Equipamentos & Serviços Diadema. India 2006[45] Hindustan Motors Engine components and heavy-duty diesel engines Buyout of joint venture formed in 1988.A.S. Chaumont. Oregon. loaders and attachments Shandong Engineering China Machinery (SEM) 2008[48] Wheel loaders Lovat Inc. Switzerland 2004[43] Babcock Borsig AG Packager of industrial gas turbines and related systems Progress Rail Services Corporation Albertville. after purchase of majority renamed Caterpillar Japan Ltd. Inc. Japan 2008 [50] Mitsubishi Heavy Industries Construction equipment Joint venture since 1963. Hindustan PowerPlus Ltd. Inc. France 2007[46] Automotive component remanufacturing Organized under Caterpillar Remanufacturing Services Forestry Division Portland. of Blount United States International. Tamil Nadu. Canada 2008[49] Tunnel boring machines Shin Caterpillar Mitsubishi Ltd. São Paulo. Alabama 2006 [44] One Equity Partners Supplier of railroad and transit system products and services. Ontario. Timber harvesting and processing equipment.Sortable table Company or Asset Acquired Location Date Acquired From Products Notes Turbomach SA Riazzino. Brazil 2008[51] Railroad equipment remanufacturing Subsidiary of Progress Rail Services Corporation . Merged into Caterpillar India in 2008. Mathagondapalli. Sagami & Akashi. Owner of Electro-Motive Diesel. 2007[47] Blount International. Inc. Toronto. Renamed Caterpillar Power India Private Ltd. Eurenov S.

Hudson. West Fargo. Inc.E. Remanufacturing transmissions. and final drives Organized under Caterpillar Remanufacturing Services Twin City Signal Inc. Pennsylvania. Ltd.Sortable table Company or Asset Acquired Ferroviários Location Date Acquired From Products Notes Gremada Industries. Michigan. 2010 United States Berkshire Partners LLC. South Korea 2009[54] Jinsung T.. Parana. Greenbriar Equity La Grange. North Dakota. Yangsan City. Brazil 2010[57] Automation and electrical equipment for locomotives and other industries Acquired by MGE.C. (UIT) Latham. a division of Progress Rail Services Corporation Electro-Motive Diesel. [58] Group LLC. United States 2008[52] Gremada Industries. GE Inspection Products Erie. Inc. specializing in providing three-dimensional representations of underground utilities Organized under Cat Advanced Systems Division . Kyungnam.. Fenton. torque converters. New York. 2010[55] GE Transportation Rail inspection products United States Division of Progress Rail Services Corporation FCM Rail Ltd. Railroad locomotives and large diesel engines Wholly owned subsidiary of Progress Rail Services Corporation Underground Imaging Technologies. United States 2010[56] Rail maintenance equipment leasing Division of Progress Rail Services Corporation Zeit Comercio e Montagem de Equipamentos Ltda Curitiba. Seal technology Ltd. Inc. 2008[53] United States Signaling. Inc. Wisconsin. et al. Illinois. 2010[59] United States Geophysical services. Co. traffic control Division of Progress Rail Services Corporation JCS Co.

8 billion. Wilson from Emerson as part of transaction. Inc. Bucyrus Wisconsin. 2011 in firm's largest acquisition ever. New Mexico. Sortable table Asset Divested Location Date Purchaser Products Notes Turbomach Division of Solar Turbines Incorporated San Diego. China 2010 [60] Xuzhou Construction Machinery Group Construction equipment Joint venture since 1995. Emerson Electric Minnesota. sold to longtime partner Kato Engineering Mankato. California. will become wholly owned subsidiary Caterpillar Xuzhou CleanAIR Systems. [edit]Divestitures Caterpillar occasionally divests assets that do not align with its core competencies. United States 2010 [61] Customized stationary aftertreatment solutions for internal combustion engines Wholly owned subsidiary of Caterpillar Inc. Caterpillar acquired F.G. United 1999[37] Company States Large electrical generators Asset swap. . Auxiliary power units not a core competency. United States 1985[64] Sunstrand Corporation Caterpillar's only aerospace asset. Germany 2010[62] 3i Group Plc Gas and diesel powered generator sets will become part of Caterpillar's Electric Power division (formerly Deutz Power Systems division of Deutz-Fahr) South Milwaukee. Santa Fe. United International. organized under Customer Services Support Division MWM Holding GmbH Mannheim. States 2011[63] Surface and underground mining equipment Transaction closed without issuing new equity on July 8. valued at $8.Sortable table Company or Asset Acquired Location Date Acquired From Products Notes Caterpillar Xuzhou Ltd Xuzhou. Inc.

other segments. United States 2007[67] Consortium of six Caterpillar dealers Distributor of forestry equipment ASV. States Rubber track machines Caterpillar formerly held 23. Rowe Price Group Inc. services and technologies into three principal lines of business: machinery. Illinois.Sortable table Asset Divested Location Date Purchaser Products Notes Agricultural equipment assets DeKalb. decided to exit the investment management business. United States 2002 [65] AGCO Corporation Design. engines and financial products for sale to private and governmental entities. and financial products. Inc. Grand Rapids. Minnesota. Pioneer Machinery West Columbia. [2] Starting in 2011. Caterpillar reports its financials using five business segments: construction industries. Caterpillar divided its products. resource industries. South Carolina.5% of ASV outstanding shares before supporting the purchase by Terex [edit]Business lines Through fiscal year 2010. [edit]Machinery [69] . assembly and marketing of Challenger track tractors Preferred Group of Mutual Funds not applicable 2006 [66] T. United 2008[68] Inc. power systems. Mutual funds Caterpillar Investment Management Ltd. Terex Minnesota.

road-building. mining. [70] India and the People's Republic of China. Piracicaba. [edit]Engines . Caterpillar machinery is used in the construction. agricultural tractors and locomotives. Illinois.Cat 365B demolition machine in action See also: List of Caterpillar Inc. São Paulo. Large wheel loaders are manufactured exclusively in the United States on three separate assembly lines at Aurora. Charleroi. energy. Gosselies. machines Caterpillar has a list of some 400 products for purchase through its dealer network. Illinois. transportation and material-handling industries. Caterpillar's line of machines range from tracked tractors to hydraulic excavators. backhoe loaders. forestry. Brazil. Caterpillar D350D articulated off-road truck Caterpillar is the world's largest manufacturer of wheel loaders. off-highway trucks. wheel loaders. The medium size (MWL) and large size (LWL) are designed at their Aurora. Sagamihara. Medium wheel loaders are manufactured at: Aurora. Illinois facility. Kanagawa. motor graders. Belgium. Japan.

This division also provides both propulsion engines and power generation systems to the naval shipbuilding industry. CTCT is based in Dayton. British River class patrol vessels. Caterpillar released a second generation of ACERT to meet even stricter standards. in addition to their use in the company's own vehicles. the Netherlands and Denmark. Caterpillar diesel engines are also used in San Antonio class amphibious transport docks. are used as the prime movers in locomotives. In 2004.Twin Caterpillar 3208T engines poweringClogher Head lifeboat (Ireland) A portion of CAT's business is in the manufacturing of diesel and natural gas engines and gas turbines which. [75] [edit]Caterpillar Electronics The Caterpillar Electronics business unit has formed Caterpillar Trimble Control Technologies LLC (CTCT). Mexican Sierra class patrol boats. headquartered in Shrewsbury. Caterpillar announced it would buy German engine-manufacturer MWM GmbH from 3i for $810 million. Switzerland. [71] In 2007. [72] In October 2010. automatic transmissions and other parts for the UK's Titan armored bridge layer. Ohio and started its operations on April 1. provides diesel engines. as well as providing the power source for peak-load power plants and emergency generators. the company introduced with ACERT diesel engines that exceed federal guidelines for emission standards. such as the Series 3512B turbocharged V-12 diesel engine for American Virginia class nuclear submarines. [62] [edit]Caterpillar Defence Products The Caterpillar Defence Products [73] subsidiary. mining and waste industries.S. Finland. semi trucks. Norway. and the CV90 family of infantry fighting vehicles used by the armies of Sweden. the Romanian MLI-84armored personnel carrier and the Swiss Piranha III light armored vehicle. and tank transporters. Shropshire. 2002. large fleets of military trucks in both the U.Spanish Alvaro de Bazán class frigates. a 50:50 joint venture with Trimble Navigation to develop electronic guidance and control products for earthmoving machines in the construction. and UK. Terrier combat engineering vehicles. marine vessels and ships. . [74] and Malaysian Kedah class MEKO A-100 offshore patrol vessels. which is currently being developed for use by American light armored formations. Trojan combat engineering tank.

Claas and Caterpillar formed a joint venture. The Challenger has been marketed in Europe as Claas machines since 1997. Indonesia. to build combine harvesters in Omaha. worldwide licensed to produce Cat branded footwear. India. Cat sold its stake to Claas.[edit]Agriculture Products Caterpillar introduced the Challenger range of agricultural tractors as the result of several development programs over a long period of time. Hungary. [77][78] hats. [edit]Manufacturing Caterpillar products and components are manufactured 110 facilities worldwide. Caterpillar sold the Challenger tracked tractor business to AGCO and licensed the use of the Challenger and CAT names and livery to them. [edit]Brand licensing and generates income Caterpillar-branded work boots manufactured by Wolverine World Wide Caterpillar sells the right to manufacture. and licensed the use of CAT and the CAT yellow livery to Claas. A parallel program was also developing wheeled high hp tractors based on using the articulated loading shovel chassis was latter merged with the crawler team. Italy. Also in 2002. Brazil. [76] Other licensees sell items including clothing. Japan. Belgium. Wolverine World Wide is one example. [edit]Financial Products [2] Caterpillar provides financing and insurance to customers via its worldwide dealer network through the licensing of the Caterpillar and CAT trademarks and logos. 51 plants are located in the United States and 59 overseas plants are located in Australia. watches. This ended Cat's venture into agriculture. Nebraska. Canada.Claas Omaha. They are marketed as Lexion combines now. with Caterpillar marketing the Claas built Lexion combine range in the USA. The program started in the 1970s and involved both D6-based units and Grader power units. France. scale models of Cat machinery and other consumer products. The result was the Challenger Tractor and the "Mobi-Trac" system. market and sell products bearing the Caterpillar brand and trademarks to licensees world wide. Mexico. USA under the CAT brand. . a licensee since 1994 and currently the sole manufacturer. Germany. In 2002. England.

the Netherlands. Fife Gail D. Caterpillar still has four major plants in the Peoria area: the Mapleton Foundry. built after World War II. Compensation. [edit]Management Caterpillar has a corporate governance structure where the Chairman of the board also acts as Chief Executive Officer (CEO).     J P W W . Rust. Management employees are retested on this code annually. first published in 1974 and last amended in 2005. The behavior of all employees is governed by a Code of Worldwide Business Conduct. The board has four committees: Audit. Dealers provide sales. is Caterpillar's largest global distributor. Brazil John T. Illinois. South Africa and Sweden. which is also the location of Caterpillar's world headquarters and core research and development activities. Smith      Douglas R. Poland. [citation needed] Most dealers use a management system called Lawson for their day to day operations. The Board of Directors is fully independent and is made up of non-employee directors selected from outside the company. which has assembled Caterpillar tractors for over 70 years. where diesel engine blocks and other large parts are cast. Finning. thePeople's Republic of China. which sets the corporate standard for honesty and ethical behavior. Governance. Dillon Joshua I. maintenance and repair services. Caterpillar's historical manufacturing home is in Peoria. As of the first quarter of 2006. Several group presidents report to the CEO. the East Peoria factory. rental equipment. [edit]Product distribution Caterpillar products are distributed to end-users in nearly 200 countries through Caterpillar's worldwide network of 220 dealers. Caterpillar's dealers are independently owned and operated businesses with exclusive geographical territories. Fosler John R. and Public Policy. Singapore. with the remaining 44% sold by one Caterpillar's 157 overseas dealers. Russia. a dealer based in British Columbia. Although Caterpillar has contracted much of its local parts production and warehousing to third parties. Canada. Goode Edward B. and the Morton parts facility. and multiple vice presidents report to each group president. Dickinson David R. Oberhelman – Chairman & CEO Charles Powell Daniel M. the Mossville engine plant. 66% of Caterpillars sales are made by one of the 63 dealers in the United States. Northern Ireland. and parts distribution. [edit]Current [citation needed] board of directors      Eugene V. Jr.

[84] The "southern strategy" involved opening new. However. Oberhelman succeeded James W. the UAW was seeking the same top wage of $40.000 per year. Caterpillar chose to make itself less vulnerable to the traditional bargaining tactics of organized labor.S. In another move. at one point losing almost US$1 million per day due to a sharp downturn in product demand as competition with Japanese rival Komatsuincreased.000 fewer union jobs [citation needed] in the Peoria. 2010 he also became Chairman. smaller facilities in Claytonand Sanford North Carolina. has increased. the United Auto Workers conducted a five-month strike against Caterpillar.900 employees compared the third quarter of 2008. Caterpillar suspended research and development work.On July 1. In response. [81] Due to the drastic drop in demand. In 1992. Caterpillar used management employees in an attempt to maintain production. One way Caterpillar achieved its goal was by outsourcing much of Caterpillar's parts production and warehouse work to outside firms. primarily by the members of the United Auto Workers. Illinois area while employment outside the U.813 persons of whom 50. Current employment figures represent a decline of 17.) [80] Caterpillar suffered further when the United States declared an embargo against the Soviet Union after the Soviet invasion of Afghanistan. Several news reports at the time indicated that products were piling up so high in facilities that replacement workers could barely make their way to their work stations. Douglas R. a record at that time. Caterpillar initiated employee layoffs. termed "focus facilities". Greenville South . [79] [edit]Employment As of December 31. there are 20. [83] During the strikes. 2010. 2009.000 to $39. according to United Auto Workers union officials and industry analysts.000 that was paid to workers at Deere & Company in 1994. sending thousands of engineers and other non-bargained for employees into Caterpillar's manufacturing and assembly facilities to replace striking or locked out union members. Komatsu used the internal slogan "encircle Caterpillar". Over ten thousand UAW members struck again in 1994–1995 for 17 months. Caterpillar threatened to replace Caterpillar's entire unionized work force. causing the company to be unable to sell US$400 million worth of pipelaying machinery that had already been built. small plants. (At the time. Caterpillar opened these new. [82] In 1994 Caterpillar offered a contract to the UAW members that would have raised the salary of top workers from $35. in right-to-work states. Caterpillar began to execute a "southern strategy". which led to strikes. Caterpillar employed 93. Owens as CEO and on October 31. The strike ended with the UAW deciding to return to work without a contract despite record revenues and profits by Caterpillar. against Caterpillar facilities in Illinois andPennsylvania. [3] Due to the restructuring of business operations which began in the 1990s. Rather than continuing to fight the United Auto Workers.562 are located outside the United States. [edit]Labor practices Caterpillar came close to bankruptcy in the early 1980s.

Dyersburg Tennessee. [86] Caterpillar was awarded the 2007 Illinois Governor's Pollution Prevention Award for three projects: The Hydraulics and Hydraulic Systems business unit in Joliet implemented a flame sprayed coating for its truck suspension system. a Washington D. and developed an updated system for reclaiming it for re-use on-site. the U. theChannel Tunnel under the English Channel. Griffin Georgia. Caterpillar also actively participates in programs that promote environmental sustainability. [85] Economic development projects in developing countries (particularly in rural.S. [edit]Public Relations In addition to the company's contributions to the first and second world wars it has contributed to major construction projects including the Hoover Dam. Caterpillar has also been found to be in violation of environmental protection laws. Despite Caterpillar's efforts to further pro-environmental sustainability goals.-based coalition of over 400 major companies and NGOs that advocates for increased funding of American diplomatic and development efforts abroad through the International Affairs Budget. LaGrange and Seguin Texas and North Little Rock Arkansas. Corinth Mississippi. The resulting benefits included a usage reduction of about 208.000 m ) of water.000 pounds annually and saving 14 million US gallons (53.000 US gallons (790 m ) of oil per year. replacing a chroming process. 3 [87] 3 Caterpillar actively participates in initiatives such as the United States Environmental Protection Agency's National Clean Diesel Campaign program. [edit]Environmental stewardship Caterpillar divisions have won Illinois Governor's Pollution Prevention Awards every year since 1997. Interstate highway system. Caterpillar's Cast Metals Organization in Mapleton worked with the American Foundry Society to help produce a rule to reduce hazardous waste in scrap metal that meet strict quality requirements. [88][89] . philanthropy and awards Caterpillar is a leading member of the U.S. Global Leadership Coalition. which encourages retrofitting fleets of older buses and trucks with newer diesel engines that meet higher emissions standards.Carolina. reducing hazardous waste by 700. Caterpillar's Mossville Engine Center formed a team to look at used oil re-use and recycle processes that forced MEC to send large amounts of used oil off-site for recycling. [edit]The environment In addition to devoting engineering resources to ensure that Caterpillar machinery meets or exceeds environmental laws and regulations in markets worldwide.C. Caterpillar equipment helped to tumble the Berlin Wall but also to build theUnited States–Mexico border and Israeli West Bank border barriers. agricultural regions) serve as new markets for Caterpillar products by improving political and economic stability and raising average incomes. as well as the construction of cities and neighborhoods across the United States. [edit]Advocacy. and also allow foundries to continue recycling certain types of scrap and maintain a competitive cost structure.

these violating vehicles emitted 1. Activists have argued that destroying the homes of relatives of suicide bombers constitutes collective punishment and such practices are illegal under international law. In 1998 alone.. in October.emit up to triple the permissible level of smog-forming nitrogen oxides (NOx). Consequently. explosive ordinance disposal and demining. [90] Caterpillar has. was successful in lobbying for an extension of deadlines they considered too severe. 2002. [edit]Violations of environmental law [92] In July 1999. Switzerland. U.. however. Caterpillar donated $12 million dollars to The Nature Conservancy in a joint effort to protect and preserve river systems in Brazil." For this reason. [95][96] The Israel Defense Forces state that the demolition of family homes of militants deters potential suicide bombers from committing terrorism and that the destruction of civilian properties in battle is sometimes necessary to fight terrorism. Background The United States government paid for." devices that regulated emissions during pre-sale tests. [93] The consent decree provided that $83 million be paid in civil penalties and determined new deadlines for meeting emissions standards. [91] Caterpillar has been listed on the Dow Jones Sustainability World Index each year since 2001. been a member of the World Business Council for Sustainable Development based in Geneva. Even so. for many years. civilian configuration Caterpillar D9 bulldozer to the Israel Defense Forces. Caterpillar – the only diesel engine company (of those that signed decrees) to fail to meet the new emissions standards deadline – was forced to pay $128 million in per-engine nonconformance penalties. The violation involve over a million diesel engines sold with "defeat devices. these engines ". After receiving the bulldozer. Caterpillar. [edit]Use [94] of machinery by the Israel Defense Forces The Israel Defense Force's use of certain Caterpillar machinery has subjected Caterpillar to criticism by activists and shareholders and a lawsuit filed in the United States by the survivors of a woman killed in Israel with a Caterpillar bulldozer operated by an Israel Defense Forces soldier. the Israel Defense Forces modified the machine for use as a combat engineering vehicle to support missions including earthworks on dangerous terrain.3 million tons of additional NOx — an amount equal to the emissions of 65 million cars.A.S. but that could be disabled in favor of better performance during subsequent highway driving. Caterpillar was named the "Clean Air Villain of the Month" for August 2000 by theClean Air Trust. and China. [edit]Caterpillar shareholder actions . Caterpillar and five other diesel engine manufacturers signed a consent decree with the Justice Department and the State of California. Some activists have criticized Caterpillar for selling machinery to be used by the Israel Defense Forces because the Israel Defense Forces have used the machinery to demolish the homes of relatives of slain Palestinian militants and also to destroy Palestinian homes during military operations.. then transferred ownership of a standard.In 2005. after governmental investigations revealed violations of the Clean Air Act.

S. stating.Caterpillar shareholders opposed to the demolition of Palestinian homes by the Israel Defense Forces repeatedly have brought motions at Caterpillar's annual meetings to examine the issue. stating that the equipment was paid for using United States government funds. District Court in Tacoma. [100] [99] The plaintiffs appealed and the 9th U. representing an extension of United States foreign policy and that it is not the court's jurisdiction to criticize United States foreign policy decisions made by the executive branch . 2007. The U. Caterpillar Inc. [98] The family of Rachel Corrie and the families of 16 Palestinian killed or injured by Caterpillar machinery used by the Israel Defense Forces sued Caterpillar Inc. However. receiving 4% of shareholder votes Corrie et al v. Caterpillar's board has recommended against the passage of the motions. In 2003 a modified Caterpillar D9R operated in Gaza by an Israel Defense Forces soldier ran over and killed Rachel Corrie. "Caterpillar shares the world's concern over unrest in the Middle East and we certainly have compassion for all those affected by the political strife. We believe any comments on political conflict in the region are best left to our governmental leaders who have the ability to impact action and advance the peace process. We have neither the legal right nor the means to police individual use of that equipment. not destroying homes. in the United States alleging Caterpillar violated human rights and committed war crimesby knowingly selling its equipment to the Israel Defense Forces." A motion regarding the subject proposed at the 2004 annual shareholder meeting did not pass. more than two million Caterpillar machines and engines are at work in virtually every country of the world each day. an American acting as a human shield to prevent the destruction of a Palestinian home. An Israeli government investigation found that the bulldozer team was on an anti-smuggling mission. and that the operator did not see Corrie. Circuit Court of Appeals upheld the dismissal on September 17.S. Washington dismissed the lawsuit in 2005.

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