Navistar International Corp. and Caterpillar Inc. announced the closing of a joint-venture transaction resulting in a new company, NC2 Global LLC, to serve the global commercial truck market. Navistar and Caterpillar first announced plans to form a joint venture in June 2008 and have identified the leadership team of the new entity that will establish its headquarters in the Chicago area.
“Together, Navistar and Caterpillar have moved this project from concept to reality in little more than one year,” said Al Saltiel, president of NC2. “We now have a dedicated and experienced leadership team that will hit the ground running.”
As previously announced, the 50/50 joint venture will develop, manufacture and distribute commercial trucks, with an initial focus on markets including Australia, Brazil, China, Russia, South Africa and Turkey. NC2’s product line will feature both conventional and cab-over truck designs and will be sold under both the Cat and International (Navistar) brands.
Separately, Navistar and Caterpillar continue to work on the design and development of a new proprietary, purpose-built, heavy-duty Cat vocational truck for the North American market. The trucks, manufactured in Navistar’s facility in Garland, Texas, will be sold and serviced through the Cat North American dealer network. Caterpillar vocational trucks are scheduled for full production in mid-2011.
“NC2 will produce and market a full line of commercial on-highway trucks for markets outside of North America,” Saltiel said. “Customers will benefit from the unparalleled depth and scope of support provided by Navistar and Caterpillar’s global dealers.”
Navistar and Caterpillar each have named three people to NC2’s board of directors. Caterpillar Group President Doug Oberhelman will serve as board chairman, and Navistar Truck Group President Dee Kapur has been named lead director from Navistar.
“The formation of this joint venture represents a long-term strategic decision,” Oberhelman said. “Despite the current challenges facing the global economy, both Caterpillar and Navistar are dedicating the right people and investing significant resources to ensure NC2’s long-term success in the global on-highway truck market.”
