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Caterpillar CEO: We're Not Leaving Illinois

PEORIA, Ill. (CBS) -- Was it a false alarm? Peoria-based Caterpillar now says it has no plans to leave Illinois.

Last week, Caterpillar chief executive officer Doug Oberhelman made headlines with a letter saying other states were trying to lure the heavy-equipment manufacturer out of Illinois.

LISTEN: Newsradio 780's Lisa Fielding reports

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But Oberhelman now says that never meant he intended the letter as a real threat to leave the state.

LISTEN: Quinn Praises Cat's Illinois Commitment, WBBM Political Editor Craig Dellimore Reports

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In the letter, Lee Enterprises' Springfield bureau reported, Oberhelman told Quinn: "I want to stay here. But as the leader of this business, I have to do what's right for Caterpillar when making decisions about where to invest."

Oberhekman wrote that he has never considered living anywhere else or relocating Cat's operations, but he told Gov. Pat Quinn that "policymakers in Springfield" make it "harder by the day." Caterpillar employs 23,000 people in Illinois.

But in a speech Wednesday in Washington to the U.S. Chamber of Commerce, Oberhelman said news reports sensationalized his statements about the state's business climate.

"The headlines were sensational -- they said things like, "'Cat leaving Illinois,' which isn't what the letter said," according to a copy of the speech. "I actually said I'm looking forward to finding ways to invest more in Illinois."

Over the weekend, Quinn said he was confident that Caterpillar would stay in Illinois. He said Saturday that the Caterpillar workforce is well-educated, "knows how to get the job done and does it," and he said the United Auto Workers recently concluded negotiations on a multi-year contract at facilities ranging from Aurora to Peoria.

At the time, he had not seen Oberhelman's letter, which said at least four states were wooing Caterpillar. But he said he expects to meet with Oberhelman to discuss a variety of issues April 5 in Peoria.
Quinn also chided those states that have made overtures.

"I don't really believe in kicking other states in the shins. I'm never gong to do that," the governor said. "I don't think that's a successful way to help our state or any state."

(TM and © Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS Radio and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press contributed to this report.)

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