Navistar-JAC joint venture OK’d by Chinese government

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Updated Aug 27, 2012


Navistar International Corp. and Chinese truckmaker Anhui Jianghuai Automobile Co. Ltd. (JAC) announced on Wednesday, Aug. 22, that the two companies have received formal approval from the Chinese government to move forward with their commercial engine joint venture to provide 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, president of Navistar Truck & Engine. “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, and since that time the companies say they have been setting things in motion for a swift and smooth launch upon formal government approval. Navistar has established a central China office in Shanghai, as well as satellite offices in Beijing and Hefei, with a 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 machining and assembly facility, research and development center and administrative offices in Hefei to support the new venture.

“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,” said Mr. An Jin, JAC chairman. “Durable fuel-efficient products will enable JAC to continue leading in the commercial vehicle market in China and to export globally.”