Ford Motor Co. said Monday it plans to
join forces with truck and diesel-engine making Navistar
International Corp. to build commercial trucks.
The 50-50 venture, for now unnamed and pending regulatory
approval, will include production of Class 6 and 7 medium-duty
commercial trucks that will be marketed separately under the Ford
and Navistar brands.
Under the alliance, the companies also will explore greater
cooperation in smaller commercial vehicles and diesel engines for
possible applications in Ford's truck products.
Terms of the venture were not immediately disclosed.
Ford the world's second-largest automaker and Chicago-based
Navistar will be equally represented on the venture's board of
directors, and neither company will have an equity stake in the
other's parent company, Ford said.
"This alliance between two industry leaders, with a combined
189 years in the truck business, will bring together the resources
that both will need in order to compete in a tough and
consolidating market," said Jim Donaldson, Ford's group vice
president of global business development.
The venture initially will produce a common chassis for Class 6
and 7 commercial trucks weighing 19,501 to 33,000 pounds for
sale in North America, with Navistar providing product design and
engineering, vehicle assembly and expanded diesel engine programs.
The trucks will be built at Navistar's plant in Escobedo,
Navistar is the parent company of International Truck and Engine
Corp., a maker of mid-range diesel engines, medium trucks, school
buses and heavy trucks. The company also is a private label
designer and maker of diesel engines for the pickup trucks, sport
utility vehicles and vans.