just-auto.com

US: Navistar eyes China diesel JV

By just-auto.com editorial team | 30 October 2009

Navistar and Anhui Jianghuai Automobile on Friday said they would explore a potential engine joint venture to develop, build and market advanced diesel engines for commercial vehicles in China.

The potential joint venture, if formed, would be a 50/50 partnership between the US commercial vehicle, motor coach and diesel engine maker, and JAC, a leading China-based maker of commercial and consumer vehicles and engines.

The proposed JV would establish a research and design centre in China's Anhui province for application engineering development, product design and technology advancements. Diesel engines produced by the new venture would primarily be used in China, as well as some export markets.

"This proposed joint venture would bring together the resources of two leaders, JAC in China's commercial vehicle segment and Navistar in the global diesel engine business," said Eric Tech, president, Navistar Engine Group. "The result would yield outstanding advanced technology products for commercial truck owners throughout the region."

"This key initiative would not only give JAC access to world-class engine products, technology and management but would also support our long-term business growth strategy," said Zuo Yanan, chairman, JAC.

Formation of the joint venture is subject to the completion of due diligence, approval by each party's board of directors, negotiation of definitive agreements, corporate and regulatory approvals. Management structure would consist of eight directors, four from JAC and four from Navistar.