Navistar Ventures Will Produce Diesel Engines, Vehicles in China

Sept. 16, 2010
Two joint ventures with JAC will bring MaxxForce to Chinas commercial vehicle sector

Two Navistar International Corp. affiliates have established joint ventures in China with Anhui Jianghuai Automobile Co. Ltd. (JAC), a manufacturer of SUVs, passenger cars, commercial vehicles and automotive parts. The first will design and manufacture Navistar’s diesel commercial engines in China, while the second will develop and manufacture commercial vehicles there.

JAC chairman Zuo Yan An said the Navistar partnership “will bring cutting-edge diesel and commercial truck technology, providing products with great fuel economy and durability, and will enable JAC to continue leading in the commercial vehicle market in China and to grow globally."

The value of the investments has not been announced, and both await final approval of Chinese officials. No timetable has been presented for either venture.

All the diesel engines produced by the venture are for domestic Chinese consumption.

The first of these efforts — the diesel engine venture — will bring Navistar’s MaxxForce® brand diesel engines to supply Chinese demand for commercial trucks with Euro IV- and Euro V-compliant diesel technology. JAC had 2010 sales estimates of 200,000 commercial trucks.

The venture will have an R&D center in Anhui province, and a manufacturing plant for MaxxForce engines and other engines for JAC’s products. These will be installed in JAC's Sword and Gallop brand trucks and International's TranStar brand trucks for Asian markets.

MaxxForce is a series of V6, V8, and inline engines that comply with EPA and Euro emissions standards for commercial vehicle engines.

The second venture involves NC2, the Navistar/Caterpillar alliance formed last year to co-develop trucks for foreign markets. It will manufacture heavy- and medium-duty trucks at an existing JAC plant.

Navistar chairman, president, and CEO Daniel C. Ustian said the two ventures “represent a significant step in Navistar's global growth.

"This is consistent with our strategic platform of leveraging the technical capabilities and assets of great companies,” Ustian continued. “Navistar recognizes the importance of the Chinese market and this venture with a strong partner such as JAC enables us to establish a firm foothold in China as we grow our business in the Asia Pacific region."