Ford, Navistar Form Joint Venture to Build Trucks

and Navistar International Corp. Navistar International (NAV) announced Monday they are forming a joint venture that initially will build trucks and later will explore “opportunities” in diesel engines.

The new group, as yet unnamed, will produce Class 6 and 7 medium-duty trucks that will be marketed under both companies’ brands.

Class 6 and 7 trucks, weighing 19,501 to 33,000 pounds, are used primarily in local delivery and short-haul service for less-than-truckload shipments.

“This alliance will be an investment in the future of both companies,” said Jim Donaldson, group vice president of Ford’s global business development. “It will create a global center of excellence for the design and production of world-class commercial trucks and separately explore expanded diesel truck engine applications."

John Horne, chairman, president and chief executive officer of Navistar, said, “In the truck market, it will lead to accelerated product development and tremendous benefits of scale. In the increasingly high-tech world of truck diesel engine development, the agreement to explore future truck diesel engine applications will enhance innovation, yielding economic and environmental benefits.”

The reports said the new venture will also include a joint North American truck service parts program providing better customer service.