Navistar eyes India

  • 04-Aug-2008 08:37 EDT

Navistar signed a joint-venture agreement with Mahindra & Mahindra to produce diesel engines for medium and heavy commercial trucks and buses in India. The joint venture, to be named Mahindra International Engines, will be 51% owned by Mahindra & Mahindra and 49% owned by Navistar. The combined investment of the two companies will be $90 million through 2012. This marks the second joint venture with Mahindra & Mahindra, following a 2005 joint venture that today makes light, medium, and heavy commercial vehicles for India and export markets. The new company’s advanced diesel engines will power the full line of trucks and buses produced by the new venture beginning in 2009. Engine components will be sourced locally, up to 85% within two years due to the strong availability of quality parts and materials from Indian suppliers.

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