Navistar International and Chinese truck maker Anhui Jianghuai Automobile Co. Ltd. (JAC) 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 JV also sets the stage for global export opportunities of JAC’s light-, medium- and heavy-duty commercial trucks.
“Our joint venture with JAC represents a significant step in Navistar’s global growth,” said Troy Clarke, Navistar’s president. “Consistent with our strategy, this partnership will leverage the assets and capabilities of both companies. We recognize the importance of the Chinese market and our joint venture with a strong partner such as JAC enables us to establish an immediate presence in China as we grow our business in the Asia Pacific region.”
Navistar and JAC signed their joint venture agreements in September 2010. Navistar has established a central China office in Shanghai, as well as satellite offices in Beijing and Hefei with a well-rounded 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 93,000-square-meter 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.