2 giant companies merge

Monark Equipment, Caterpillar’s sole authorized dealer in the Philippines, said Caterpillar Inc. and Daimler Chrysler AG have agreed to form a 50/50 global alliance to develop, manufacture and distribute medium-duty engines, and other powertrain components to serve the needs of third-party framework for a number of joint ventures, supply agreements and cooperative projects.

In a joint announcement, Caterpillar chairman Glen Barton said: "We are excited about this partnership. Our worldwide engine business is a major driver of Caterpillar’s growth."

Jurgen Schrempp, Daimler Chryler chairman, observed that "this alliance will bring together legendary engineering capabilities and long tradtitions of manufacturing excellence to benefit not only the customer but our employees and shareholders as well."

"This is a unique opportunity to create a premier, global engine producer with the size of and resources needed for long-term success in an increasingly demanding marketplace," said Caterpillar Group president Richard Thompson, who leads the company’s worldwide engine business.

Daimler-Chrysler AG is the world’s leading manufacturers of commercial vehicles with the brands Mercedes-Benz, Freightliner, Sterling, Western STar, Setra, Thomas Built Buses, DDC and MTU.

Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. Headquartered in Preoria, Illinois, the company posted 1999 sales and revenues of $19.7 billion.