Caterpillar Rolls Out Its Hybrid D7E Tractor

Business Week (7/20, Scanlon) – The D7E, which will be used mostly in construction and mining, is the result of almost 10 years work. With the blessing of the corporation's leadership, engineers decided to start from scratch in order to come up with a machine that could deliver a quantum leap in productivity. "Usually when we update a tractor we make an evolutionary change, but this time we started with a clean sheet," says Caterpillar engineering manager Mike Betz.

It goes on sale this October with a price tag of $603,000, almost $100,000 more than the comparable D7R tractor already on the market. And while Betz admits that "hybrids can be a hard sell," he also says he's confident the demand will be there. "The machine is 30% more fuel efficient than a conventionally powered tractor of its size, it's 10% more productive, and it's 10% less expensive to operate." Caterpillar expects buyers to make that $100,000 back in cost savings within two and a half years.