Navistar, JAC one step closer to Chinese engine joint venture

  • 01-Oct-2012 12:14 EDT

Navistar International Corp. and Chinese truck maker Anhui Jianghuai Automobile Co. Ltd. (JAC) recently received formal approval from China’s National Development and Reform Commission (NDRC) to move forward with their commercial-engine joint venture, first announced in September 2010 when the companies signed an agreement. The JV will provide JAC with access to Navistar’s Euro IV and Euro V compliant technology, and also sets the stage for global export opportunities of JAC’s light-, medium-, and heavy-duty commercial trucks. Navistar has established a central China office in Shanghai, as well as satellite offices in Beijing and Hefei. In Hefei, product development engineers from both companies have been collaborating on engine and vehicle design. Construction also has started on a 93,000-m2 (1 million-ft2) machining and assembly facility, R&D center, and administrative offices in Hefei to support the new venture. Products slated for the JV include Navistar’s MaxxForce 3.2-, 4.8-, and 7.2-L, and JAC’s 2.8-L 4DA1 engines. Now that the JV has received its business license, Navistar and JAC planned to formally submit their commercial truck joint venture application to the Chinese government this fall.

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