Caterpillar Inc has announced a long-term engine supply agreement with Blue Bird Corp, a manufacturer of school buses. Under terms of the agreement, Caterpillar will supply most engines used in Blue Bird's school bus production. It will supply Blue Bird with its 3126E, C9, and C12 on-highway bus engines equipped with the company's ACERT technology.
ACERT technology will be available commercially beginning early in 2003. Caterpillar has invested nearly $500 million in this technology, designed to provide United States Environmental Protection Agency emissions standards approval for 2007 and beyond. The firm has reduced on-highway diesel emissions by nearly 90% since 1988 and will reduce those emissions another 90% by 2007. This supply agreement takes effect with Blue Bird's Type D school buses beginning Nov 1, 2002. Financial details of the agreement were not released.