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JAC and Navistar Sign Two Integrated JV Agreements to Produce and Market Commercial Trucks and Diesel Engines

An affiliate of Navistar International Corporation and Anhui Jianghuai Automobile Co. Ltd. (JAC) have signed a joint venture agreement to develop, build and market advanced diesel commercial engines in China. An affiliate of NC2, a joint venture between Navistar and Caterpillar, Inc. also signed today a joint venture agreement with JAC to develop, build and market advanced commercial vehicles in China.

The engine joint venture will establish a research and design center in China’s Anhui Province for application engineering development, product design and technology advancements, to support the truck joint venture and other engine requirements of JAC’s product portfolio. A dedicated manufacturing facility in Hefei, Anhui Province of China will be constructed to produce JAC and the Navistar-designed MaxxForce brand diesel engines. The truck joint venture will build vehicles at an existing 800,000 square foot JAC manufacturing facility dedicated to medium- and heavy-duty trucks.

The engine joint venture will focus on meeting emerging needs of the Chinese commercial truck market with Euro IV and Euro V compliant technology. The MaxxForce line of engines will provide JAC customers with durable and fuel efficient clean air technology. MaxxForce technology will assure owners that they are driving a product that is clean, capable and efficient, meeting the demands of the Chinese marketplace. JAC’s 2010 vehicle sale estimates in the combined commercial vehicle segments of light heavy trucks are 200,000 units. Diesel engines produced by the new venture will be used in China.

The truck and engine agreements are integrated to support the advanced technology power requirements of a number of medium- and heavy-duty vehicles, which include the JAC Sword and Gallop brands and International Brand TranStar. Engines supporting the full range of commercial trucks include the JAC existing products and a wide range of Navistar MaxxForce brand engines.


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