Cat will not cut costs to win UKADT sales

Caterpillar has decided it will not cut the prices of its ADTs in order to win UK business and is prepared to lose market share.

Alex Hillman, general sales manager of Cat distributor Finning, said: "While we have lost some business, we have sold more than anticipated."

He said over the past three to four years ADT prices have declined substantially and some of Cat's rivals have been very aggressive on pricing. "Caterpillar makes premium products that demand a higher price," he added.

Industrial action at the Peterlee factory in County Durham caused supply problems earlier in the year, but it is now running near to full capacity on a two-shift basis.

Eric Jordan, commercial manager at Peterlee said that worldwide sales were holding up, although Caterpillar has decided to halt its plans to open an ADT production line in the US.