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Navistar and JAC receive JV approval from Chinese Government

by Staff Writer
August 23, 2012
in Industry News
Reading Time: 2 mins read
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American truck manufacturer Navistar and the China- based JAC have 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 JV also sets the stage for global export opportunities of JAC’s light, medium and heavy duty trucks.

Navistar and JAC signed their joint venture agreement in September 2010 and since that time the companies have been setting things in motion for a swift and smooth launch upon formal government approval. Construction has commenced on a 93,000 square metre machining and assembly facility, research and development centre and administrative offices in the Chinese city of Hefei.

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 within the next few months. The companies have also signed letters of intent to collaborate on design and production of light duty commercial truck export opportunities for Navistar dealers in Brazil and Mexico.

“Navistar has an array of truck and engine designs that will serve the Chinese commercial vehicle market today and innovative technologies for tomorrow as China’s infrastructure and logistics needs continue to grow in the future,” said Troy Clarke, president of Navistar Truck and Engine.

“We recognise 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,” said Mr Clarke.

“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,” added Mr An Jin, the Chairman of JAC.

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