Caterpillar outlines engine 'de-tiering' strategy

Caterpillar said its dealers will provide ‘de-tiering’ services for Tier 4 Interim engines under 130 kW from the beginning of next year, with engines in the 130 to 895 kW sizes not requiring any modifications for use in lesser regulated markets.

Cat said the de-tiering of the smaller engines would allow customers in lesser regulated countries to sell and buy used Tier 4 Interim products. For the larger engine category, it said testing and field validation had confirmed that engines will not require modification.

The manufacturer will authorise modifications that remove aftertreatment from engines, with the service being provided exclusively by local dealers beginning in 2014.

"Tier 4 used equipment migration is a complex issue," said 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 US, Canada, Europe and Japan must operate on ultra-low sulphur 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.”

Caterpillar began introducing Tier 4 products in February 2011 and the field population is now more than 82000 products in North America, Europe, Japan and Australia.

Mr Younessi said a key consideration for Caterpillar was to help ensure customers maintain the resale value of their used equipment; “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”.

The next migration will be to Tier 4 Final engines. These regulations take effect in the 175 - 750 hp (130 0 558 kW) range on 1 January, 2014, and Cat said it would be some time before it started to discuss Tier 4 Final migration.