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Caterpillar, Navistar Form Alliance for Domestic and International Truck Production

Construction equipment maker Caterpillar and truck and engine manufacturer Navistar International Corporation have signed a deal in which they will produce commercial heavy-duty trucks to be sold in North America, as well as a 50-50 joint venture to develop, manufacture, and sell commercial trucks in regions outside North America. A joint statement from the Illinois-headquartered companies says the North American alliance will produce a new line of trucks that will be manufactured at Navistar's facility in Garland, Texas, and sold through Caterpillar dealers. "The heavy-duty vocational trucks will be purpose-built to complement Caterpillar's existing product line and will give Caterpillar dealers an unmatched ability to support customer needs from extraction through delivery," says George Taylor, director and general manager of Caterpillar's Global On-Highway Department. The international focus will initially be in Australia, Brazil, China, Russia, South Africa, and Turkey, with vehicles sold under both the Caterpillar and International brands. "We believe this clearly is an opportunity where the whole is greater than the sum of the parts," says Dee Kapur, president of the Navistar Truck Group. "While Cat and Navistar do not compete in our core businesses, each brings distinctive capabilities to the table and have common goals to expand the base of engine, truck and equipment customers worldwide." Products for the international venture are expected as early as the third quarter of this year. The companies did not release financial terms or information regarding potential job creation.

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