September 28, 2006 10:50 AM, EDT

Navistar Subsidiary Signs Licensing Agreement With Chinese Engine Maker

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avistar International Corp. subsidiary MWM International Industria De Motores Da America Do Sul Ltda. and China’s Dongfeng Chaoyang Diesel Co. signed on Thursday a licensing agreement under which Dongfeng will manufacture and sell certain diesel engine models in China.

Terms of the deal, which is still subject to approval from the Chinese government, were not disclosed, Navistar said in a statement.

The companies will cooperate on engine development and diesel engine application for Chinese vehicles.

Dongfeng is slated to begin production in 2008 and initially manufacture up to 50,000 engines a year, Navistar said.

Navistar is the parent company of truck and engine manufacturer International Truck and Engine Corp.