Caterpillar 2010 Annual Report Download - page 20

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HELPING TO POWER CHANGE
Caterpillar has had a strong focus on the Power Systems business for many years.
While we’ve been successful, we recognize that the global Power Systems landscape is
changing and growing. To continue to be an industry leader with the broadest products
and solutions offerings, we have to change too. It’s not enough to provide just Power
Systems, we also must provide total system solutions that meet the growing and diverse
needs of our global customers. We’ve aligned ourselves to do just that.
As part of our corporate reorganization in 2010, we created a new Energy & Power Systems organization. This group is
focused on aggressively growing from our solid base as a traditional engine manufacturer to a full-line power systems
provider. Our new group brings together all of our Power Systems teams under one umbrella with a sharp focus on
providing solutions to marine, oil & gas, alternative fuels, electric power, industrial and rail end-markets.
While developed markets remain an important opportunity, the emerging countries increasingly require more power and
broader solutions with huge potential. We are positioning ourselves to be the industry leader in both the developed and
emerging markets.
Leveraging the strength of our new organization, we’ve taken a hard look at our internal operations and made great strides
in improving our speed, efficiency and quality. In 2010, those efforts had tangible results. For example, Solar Turbines was
able to meet urgent customer demands through a short build-to-order lead time that is unmatched in our industry. Similarly,
we have reduced lead times by up to 70 percent to deliver large engines from our facility in Kiel, Germany, that enables us
to more efficiently supply products and solutions to our customers. In our Larne, Northern Ireland, facility we inaugurated a
new assembly line for smaller gensets, which has created additional capacity and increased productivity. At the same time,
we improved our product performance and compliance needs. Our Tier 4 programs are on time, on cost and live up to the
quality standards our customers have come to expect from Caterpillar.
We’ve also worked to expand our capacity to provide power solutions. In June 2010, we opened a new state-of-the-art
engine assembly plant in Seguin, Texas, with positive results in safety, quality, velocity and cost. In November 2010, our
new engine plant in Wuxi, China, produced its 10,000th engine. Caterpillar was officially recognized as one of the top-five
engine manufacturers in China at Shanghai Bauma. Finally, in November 2010, we announced our plans to
produce 3500 series engines in Tianjin, China, to supply customers in China and the Asia-Pacific region.
We made great progress in expanding our Energy & Power Systems business through acquisitions. In
August, we acquired Electro-Motive Diesel, one of the largest diesel electric locomotive manufacturers in the
world. This acquisition will allow us to expand in the U.S. and internationally, and strengthens our existing
Progress Rail services business. In October, we signed an agreement to acquire MWM, a leading German
alternative fuels engine manufacturer. Following the closing of this transaction, MWM is expected to position
Caterpillar to be a leader in providing gas engines solutions for our customers. Combining our existing
strengths and competencies with these two new businesses will improve our competitive position and
provides significant opportunities in the future.
LEADERSHIP • EXECUTIVE OFFICERS
Gerard Vittecoq
Vittecoq joined Caterpillar in 1975 and held various accounting and finance positions at Caterpillar’s Vernon
foundry in his first six years with the company. In 1982, he was appointed finance representative and later
assistant manager at Caterpillar Overseas S.A. (COSA). In 1985, he became comptroller for COSA. From 1987
to 1990, he was in charge of strategy projects and was appointed director of strategy & planning in 1990. In
1995, Vittecoq was promoted to managing director of Caterpillar France S.A. In 1997, he became managing
director of Caterpillar Belgium S.A. He was elected vice president in January 2001, overseeing the EAME
Product Development & Operations Division. In January 2004, Vittecoq was named group president.
Big 8 Imperative
Aggressively grow Power
Systems…rail, power
conversion, growth markets
and alternative fuels.
2010 YEAR IN REVIEW