Oct. 30 – Navistar International has signed a letter of intent to form a joint venture with a Brazilian company to make diesel engines in South America.

Navistar will acquire 50% interest in Maxion Motores Ltda. From Iochpe-Maxion S.A., which sells diesel engines to Ford, General Motors, Agco, and Mercedes-Benz in South America. Maxion is the diesel engine market share leader in the Mercosul market.
The joint venture will continue to produce the current Maxion products, while adding the 7.3-liter V-8 turbo diesel engine.
It is anticipated that the joint venture will be finalized by the end of the year, with production of the 7.3-liter V-8 engine to begin August 1999 at one of Maxion’s plants.