Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, June 22, 1993                   TAG: 9306220070
SECTION: BUSINESS                    PAGE: B6   EDITION: METRO 
SOURCE: Wire report
DATELINE:                                 LENGTH: Medium

CATERPILLAR MAKES A DEAL WITH RUSSIAN TRUCK MAKER

The new venture, called Novotruck, will be aimed at the Russian and East Europe markets.

"There is potential to sell 300,000 trucks a year in those markets," said Richard E. Stober, a spokesman for Peoria, Ill.-based Caterpillar.

Caterpillar is slated to be the engine-building partner of the venture. (Caterpillar, of Peoria, Ill. is the parent of Carter Machinery Co. of Salem.)

"We've sold earth movers and bulldozer equipment from time to time to Russia, but this is the first time we've had the opportunity to sell engines," Stober said.

Bellevue, Wash.-based Paccar, makers of Peterbilt and Kenworth heavy trucks, will contribute engineering support for the assembly plant and assist in operating the plant, according to Mike Dumoulin, Paccar's sales manager for Africa.

Russia has always turned to the West for transport technology.

"For years, Russia has bought millions of dollars of equipment from Western Europe to build huge assembly plants," said Robert Ross, president of Eastern Europe Inc., a New York-based international import and export firm that specializes in Russia and Eastern Europe.

"The problem was that their quality control was terrible, which resulted in production problems with trucks. There's also a problem with barter. Can Russia offer a product that they [Caterpillar and Paccar] can sell?" - Wire report