HD Trucks of JAC-Navistar under Approval

www.chinaspv.com: JAC and Navistar have made progress in cooperation on complete vehicles successively after the inauguration of JAC-Navistar Diesel Engine Co., LTD in 2012. It is learnt form JAC that the jointly invested heavy-duty (HD) truck project with Navistar has come to a final stage—waiting for the last approval of State-owned Assets Supervision and Administration Commission.

The cooperation between JAC and Navistar is dated back to 2009 when JAC announced to sign a cooperative framework agreement regarding cooperation on medium-duty (MD) and HD trucks with NC2 Global LLC (a JV of Caterpillar and Navistar producing trucks) in Hefei, and both sides would discuss to establish a JV responsible for production, manufacturing and selling MD and HD trucks as well as parts at Hefei, Anhui province.

In 2010, JAC signed an agreement on Cooperative Project on Engine with Navistar and another agreement on Cooperative Project on MD and HD Trucks with NC2, indicating JAC’s separate investment on engines and HD trucks. 

In July 2012, the project on engine was approved. On August 23, 2012, JAC-Navistar Diesel Engine Co., LTD was unveiled in Beijing. President of JAC An Jin said at the ceremony that JAC and Navistar would gradually extend cooperation into joint R&D of engines, manufacturing of MD and HD trucks and school buses, marketing in South and North America.

According to previous reports, Navistar and its JV NC2 have a clear cut on business. In the engine sector, Navistar plays a major role and its MAXXFORCE will be introduced into China; while in the complete vehicle field, NC2 plays a major role and its parent company Navistar is mainly in charge of backstage work such as technical support and strategic management.

In the first half of 2013, JAC sells 226,026 vehicles, up by 21.01% year on year. The sales volume of trucks remains the highest, reaching 121,480 units with a year-on-year growth of 18.15%. Insiders say that the approval of HD trucks of JAC and Navistar will boost JAC’s HD truck business both at home and abroad.

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