Navistar International Corp. and Chinese truck maker Anhui Jianghuai Automobile Co. Ltd. announced that the two companies have received formal approval from the Chinese government to move forward with their commercial engine joint venture.
The joint venture will focus on meeting the emerging needs of the Chinese commercial truck market by providing JAC with access to Navistar's Euro IV and Euro V compliant technology. The joint venture also sets the stage for global export opportunities of JAC's light-, medium- and heavy-duty commercial trucks.
"Our partnership with Navistar will bring cutting-edge diesel and commercial truck technology to our customers, as we deliver on our mission to make better products while we build a better society," said An Jin, chairman, JAC.
Navistar and JAC signed their joint venture agreements in September 2010 and since that time the companies have been setting things in motion for a launch upon formal government approval. Navistar has established a central China office in Shanghai, as well as satellite offices in Beijing and Hefei with a team of Chinese nationals and U.S. and Brazilian employees who work closely with their JAC counterparts, gaining insight and understanding of the Chinese market.
In Hefei, product development engineers from both companies have been collaborating on engine and vehicle design. Additionally, construction has started on a machining and assembly facility, research and development center, and administrative offices in Hefei to support the new venture.
The engine joint venture represents the first phase of global collaboration between Navistar and JAC. The companies plan to formally submit their commercial truck joint venture application to the Chinese government later this fall. In addition, earlier this spring the two companies signed letters of intent to collaborate on design and production of light-duty commercial truck export opportunities for Navistar dealers in Brazil and Mexico.
The products slated for the joint venture include Navistar's MaxxForce 3.2, 4.8, 7.2 and JAC's 2.8 4DA1 liter engines.