In 1987, Caterpillar introduced its first tractor equipped with rubber tracks, the Challenger 65, primarily to compete against mainly articulated large tractors. The tracks, 24.5 inches wide and 270 cm long, were reinforced with steel cables. The traction was promised to be over 50% greater in the field and 20% greater on hard surfaces compared to a wheeled tractor, and the ground pressure was low due to the double contact surface compared to a wheeled tractor.

The engine was a turbocharged and intercooled 10.5-liter with a power output of 270 hp. A 30% increase in torque was reported. The transmission was a 10+2 full powershift, allowing the selection of any gear directly when starting to move. The cab noise level was 77.5 decibels. Optional equipment included radar-based slip control, a 3-point hitch, and a power take-off (1000 rpm).

For 1991, the power was increased to 285 horsepower and the model designation changed to 65B. At the same time, a 325-horsepower Challenger 75 equipped with the new shorter-stroke C-10 series engine was introduced. Its tracks were increased to 27.5 inches wide. Narrower and wider track options were also available for both models.

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