Beijing, China – A partnership of Navistar, Caterpillar and Anhui Jianghuai Automobile (JAC) will develop, build and market advanced diesel commercial engines and vehicles in China. JAC is a leading producer of commercial and consumer vehicles and engines in China. The deal is pending approval by Chinese government authorities.

The engine joint venture will establish a research and design centre in China’s Anhui Province to support the truck joint venture and other engine requirements of JAC’s product portfolio. A dedicated manufacturing facility in Hefei will be constructed to produce both JAC engines and the Navistar-designed MaxxForce diesel engines. The truck joint venture will build vehicles at an existing JAC manufacturing facility dedicated to medium- and heavy-duty trucks.

The engine joint venture will focus on meeting the emerging needs of the Chinese commercial truck market. JAC estimates the 2010 market at 200,000 units.

“These joint ventures represent a significant step in Navistar’s global growth,” said Daniel Ustain, chairman, president and CEO of Navistar. “This is consistent with our strategic platform of leveraging the technical capabilities and assets of great companies. 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.”

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