Bulldozer: How Caterpillar rode over the Asian currency collapse

Millman, Gregory J.
March 1999
Financial Executive;Mar/Apr99, Vol. 15 Issue 2, p22
Academic Journal
The article focuses on the economic success of Caterpillar Inc. during the Asian financial crisis of 1997. It states that in the 1980s, Caterpillar was suffering from Japanese competition due to the surge in the value of the U.S. dollar compared to the Japanese Yen. It comments on Caterpillar's "Four Continents Strategy" to fight Japanese competition, eliminate currency risk, and restructure the company to cut costs and increase volume. It mentions that Caterpillar joined in a joint venture with Mitsubishi to fight Komatsu's dominance of hydraulic excavators in Japan. It comments that by manufacturing in foreign countries, it can avoid most currency hedging and has lower costs even when the U.S. dollar is stronger than foreign currency.


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