WARRENVILLE, IL - Navistar International Corporation announced that one of its wholly owned affiliates has signed a joint venture agreement with Modec Limited of the United Kingdom to create the Navistar-Modec EV Alliance, LLC. The joint venture will produce Class 2c-3 all-electric commercial trucks for sale in North, Central and South America.

The trucks are designed and purpose-built to be electrically driven. Intended for urban applications involving heavy stop-and-go driving, they are aerodynamically styled with a two-ton plus carrying capacity, rely solely on plug-in power, and are projected to have a range of up to 100 miles per charge. They produce zero tailpipe emissions and are the latest in a series of advanced, clean technology vehicles that have become part of Navistar's portfolio.

In August, President Obama announced that Navistar would receive a federal grant of $39.2 million in government stimulus funding from the Department of Energy to develop and build all-electric trucks. These trucks will be produced in Elkhart County, Ind. Navistar intends to produce 400 electric vehicles in 2010, and expects to be producing several thousand annually within two years. As volumes grow, Navistar anticipates the creation of up to 700 new jobs, including suppliers and employees.

The collaboration between Navistar and the Department of Energy demonstrates the importance of business and government working together to make energy efficient vehicles a reality, and the continued need for research and development of advanced commercial vehicle technologies.

"The commercial market is ready for electric vehicle technology to advance," said Dee Kapur, president, Navistar Truck Group. "This vehicle is road ready for fleets to implement as a practical solution for many applications. It has an excellent, eye-catching design that says, 'this is something different, the future is now.' We see this as an ideal vehicle for the U.S. urban markets. We already have interested customers, including some of the most respected names in the industry."

"We are very pleased to partner with Navistar in this new venture," said Bill Gillespie, Modec chief executive officer. "Navistar's commercial truck market leadership, coupled with their proven track record of clean vehicle technology, makes them the perfect partner."

"Working with Modec is another example of Navistar's strategy of growth through leveraging our own assets and those that others have built," Kapur added. "This joint venture further enhances our ability to provide customers with the best technology available, while also reducing America's dependence on foreign oil and preserving our environment." By one internal estimate, depending on the source of electricity, each zero-emissions electric truck could prevent as much as 20,000 lbs. of carbon dioxide from being released into the atmosphere annually when compared to a fossil fuel powered truck with a similar duty cycle.