INDUSTRY
NEWS
THE RESHAPING OF CATERPILLAR CONTINUES
As July 1 CEO transition from Owens to Oberhelman approaches, Cat shakes up the org chart; first group president headed for Asia
BY MIKE OSENGA
T
he changes continue in Peoria, Ill., with the announcement in early May of a reorganization at the top of Caterpillar Inc., as well as a reordering of the company’s division- al structure. The moves are wide- spread and aggressive. A message is definitely being sent here. The timing for redrawing the or- ganizational chart and the senior management changes come as Cat prepares for the July 1 handover of the CEO reins from Jim Owens to Doug Oberhelman. When the dust eventually settles, Caterpillar will have one less grou
p
resident, at least five changes at the vice president level and different responsibilities for the presidents that remain. Further, underscoring the impor- tance it places on the Far East in its growth models, Cat will — for the first time — have a group president head- quartered in Asia, with the exact loca- tion to be announced. Cat will also have fewer divisions and different homes for different busi- ness units within those reshaped divi- sions — the full details of which have not yet been announced. This is shaping up to be one of the
New Boss:
Douglas R. Oberhelman becomes Caterpillar CEO on July 1 and chairman of the board on Nov. 1, 2010. Oberhelman has announced a sweeping series of top management and organiza- tional changes for the Peoria, Ill.-based equipment and engine giant.
Headed For Asia:
Becoming the first Caterpillar group president to be based in Asia, Rich Lavin will relocate to the Far East later this year, responsible in part for Caterpillar’s machine businesses.
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