Caterpillar announces strategy for resale of Tier 4 Interim products in lesser regulated countries

Caterpillar's strategy for resale of Tier 4 Interim equipment in lesser regulated countries includes the availability of decertification kits for engines under 156 kW.

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Caterpillar Inc. has announced its strategy for meeting the needs of customers in lesser regulated countries selling and purchasing used Tier 4 Interim products for operation in lesser regulated countries, where prevailing fuel quality and fuel sulfur content vary widely. Based on extensive testing, analysis and field validation, Caterpillar has determined that Cat Tier 4 Interim engine systems between 156 and 895 kW (7 to 32 liter engines) will not require any modification to operate in lesser regulated countries. For Cat Tier 4 Interim engines less than 156 kW, Caterpillar will offer authorized modification processes that remove aftertreatment from machine and commercial engine configurations to enable operation in lesser regulated countries. Modification processes, which includes decertification, will be made available to customers in lesser regulated countries exclusively through their local Cat dealer beginning in 2014.

Caterpillar anticipates both the modified <156 kW engine systems and unmodified 156 to 895 kW engine systems will meet used equipment customer expectations for operation in the vast majority of potential lesser regulated export destinations.

“Tier 4 used equipment migration is a complex issue,” says Ramin Younessi, Vice President, Industrial Power Systems Division. “Because Caterpillar serves customers in all markets, we develop products to meet the needs of customers in all types of regulatory environments. For example, all non-road equipment operated in the U.S., Canada, Europe and Japan must operate on ultra-low sulfur diesel fuel. When equipment developed for certain markets, like our Tier 4 equipment, moves to different markets, it adds challenges for Caterpillar, our dealers and our customers. Challenges arise due to diverse emissions regulations, the need for dealer readiness training and the need to help customers understand how to operate and maintain these next generation products. Most importantly, customers contemplating the purchase or modification of used Cat Tier 4 products need to understand and comply with their local regulatory requirements.”

Since Caterpillar began introducing Tier 4 products in February 2011, the field population has grown rapidly to over 82,000 products operating in North America, Europe, Japan and Australia. These products have amassed almost 42 million operating hours, with excellent reliability and fuel efficiency results—creating interest among used equipment purchasers. According to Younessi, a key consideration for Caterpillar in developing its strategy for Tier 4 migration was to help ensure customers maintain the resale value of their used equipment. This gives them options to sell in new markets, including less regulated countries.

Younessi adds, “With the migration strategy, we’re looking forward, ahead of the Tier 4 Interim products that are already finding their way overseas to lesser regulated countries. Tier 4 Final products won’t be far behind the Interim products, which is why the strategy we’ve developed focuses on a solution for today’s customers—and for future customers.”

Beginning with Cat dealers in locations Caterpillar has identified as higher probability recipients of used Tier 4 equipment, the company is preparing dealers to support the migration of used equipment to lesser regulated countries. These dealers will have access to service training, parts stock, service tooling and product information, including detailed information on specific product availability.