Navistar, Caterpillar Set China Truck Venture
Navistar International Corp. and Caterpillar Inc. are in discussions with a Chinese firm to set up a truck- and engine-making venture in China, Bloomberg reported Thursday, citing a Chinese newspaper report.
Anhui Jianghuai will hold a 50% stake in the venture, with Caterpillar and Navistar owning the rest, the Shanghai newspaper said, Bloomberg reported, China’s National Business Daily.
Caterpillar and Navistar will invest cash and technology into the venture, which will use existing Jianghuai production facilities, the report said.
The venture will make heavy and medium-sized trucks and be set up next month, according to the paper.
Caterpillar, which said earlier this month it planned new partnerships in China, said last year it will pull out of the North American Class 8 truck engine market by 2010, except for a partnership with Navistar.
