PEORIA, IL – Caterpillar Inc. and Navistar International Corporation have signed a definitive agreement to produce Caterpillar heavy-duty vocational trucks for sale in North America and form a 50/50 joint venture that will pursue global commercial truck opportunities outside of North America.
The 50/50 joint venture will develop, manufacture, and distribute commercial trucks in regions outside of North America and India. Markets for the joint venture products will be assessed individually with initial focus being Australia, Brazil, China, Russia, South Africa, and Turkey. It is anticipated that the portfolio of products will feature both aero nose and cab-over designs and will be sold under both the Caterpillar and International brands. The first products are expected to be available as early as the third quarter of 2009.
The transaction is subject to receipt of various regulatory approvals and other closing conditions, including the execution of the related joint venture operating agreement and other ancillary agreements.
Following the closing of the transaction, a leadership team and board of directors comprised of both Caterpillar and Navistar representatives will be named.
Under the strategic alliance, Caterpillar and Navistar will develop and manufacture a new line of heavy-duty Caterpillar vocational trucks for North America only. The new Caterpillar trucks will be co-developed by Caterpillar and Navistar and manufactured in Navistar's Garland, Texas facility. The trucks will be sold and serviced through the Caterpillar North American Dealer network.
The Caterpillar trucks will feature key Caterpillar proprietary components and technology and will target customers who operate in a wide variety of vocational applications, such as earth moving, quarry, waste, mining, general and heavy construction, logging, and road construction.
The new Caterpillar on-highway vocational trucks will be unveiled in late 2010 and will go into full production in early 2011. The trucks will be sold and serviced exclusively by Caterpillar Dealers in North America. The transaction is subject to various closing conditions, including the execution of the related strategic alliance agreement and certain other ancillary agreements.
