Beijing time on the evening of September 10, North American commercial vehicle and engine production giant Navistar International Corp (NAV) and US heavy machinery manufacturer Caterpillar (CAT) announced on Thursday that the two companies have established a joint venture and began Sales of civil heavy-duty trucks in markets outside North America. Navistar said that the joint venture named NC2 Global LLC will produce and sell trucks in the international market. Initially identified key markets are Australia, Brazil, China, Russia, South Africa and Turkey. Navistar and Caterpillar will each hold 50% of the shares in this company. Navistar stated that NC2's range of products will include traditional heavy-duty trucks and cab-over trucks, which will be sold under brands such as "CAT" and "International." NC2’s corporate headquarters will be based in Chicago and will be governed by CEOs of both Navistar and Caterpillar. Al Saltiel, Navistar’s vice president of marketing, will serve as president of NC2. Bob Iacullo, business resource manager for Caterpillar's basic product development division, will serve as chief financial officer of NC2. Navistar and Caterpillar will each appoint three board members. In addition, Navistar said the two companies will continue to collaborate on the design and development of new heavy-duty trucks tailored specifically for the North American market. The new truck will be produced by Navistar's Garland, Texas facility and will be sold through the Caterpillar North American dealer network. After the close of trading on Wednesday, Navistar reported that its third-quarter results were not as good as market expectations, and lowered its full-year earnings forecast.
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Navistar and Caterpillar to Form Trucking Joint Venture