US: Navistar to set up joint venture in China
The central Chinese government has granted approval to US truckmaker Navistar for a joint ventue with Anhui Jianghuai Automobile Company valued at US$400m.
The newly formed company will develop, manufacture and sell heavy duty trucks and engines for light to medium duty use. Based in Heifei City, the venture will import parts from Navistar in the US. Direct exports from the US are valued at US$15m in the first year and are expected to grow significantly as the venture comes on stream and production increases.
Editor's Comment: The announcement of this joint venture is important to Navistar in that it opens up opportunities for it to expand its presence in what is arguably one of the fastest growing commercial vehicle markets in the world. Not only will it help to build upon its truck operations, but it will expand its engine interests with third parties and enable it to compete for business with China's indigenous light and medium duty truck producers.