The two companies agreed to call it quits on their supply, technical assistance and license agreement.
Come October, Navistar products will be designed, manufactured and distributed by NC2, the global commercial truck joint venture between Navistar and Caterpillar Inc.
Under a separate agreement, Iveco will continue to provide authorized parts, service and support for International trucks in Australia for seven years. Iveco will also continue to build and sell its existing inventory of International trucks, which is currently estimated to extend through approximately June 2011. Existing product warranties for vehicles sold through this time will continue in force as per their original terms.
"Iveco is pleased to continue its relationship with Navistar as an authorized provider of parts, service and support for International trucks, for the long term," said Giorgio Gallia, Iveco's managing director.
"This amicable agreement preserves continued service for International brand trucks in Australia," said Phil Christman, president, Navistar global truck operations.