Trimble and Caterpillar Inc. recently announced their intention to form a new joint venture to develop and manufacture advanced electronic guidance and control products for earthmoving machines. The companies are working toward a definitive agreement and the joint venture should begin operations in early 2002.
As part of the 50-50 jointly owned venture, both Trimble and Caterpillar intend to contribute selected existing electronic products that combine Global Positioning System, laser, wireless communications, computing and software technologies into on-board packages that improve productivity for both the construction and mining markets.
Under the proposed financial terms, each party will contribute approximately $11 million to form the joint venture. In addition, Trimble will transfer certain machine control technology in exchange for approximately $22 million from the joint venture.
The joint venture will develop machine control products that use site design information combined with positioning technology to automatically control dozer blades and other machine tools.
