Shanghai, August 21 (Gasgoo.com) Anhui Jianghuai Automobile Co. (JAC) is in talks with construction and mining equipment manufacturer Caterpillar Inc. and truck maker Navistar International Corp. to establish a joint venture, state media reported today.
The three parties have basically agreed on the framework for a 50-50 venture to make medium- and heavy-duty trucks and engines. JAC will hold a 50% stake in the venture, with Caterpillar and Navistar owning the rest. Some other related details will be ironed out soon.
Caterpillar and Navistar will invest cash and technology into the venture, which will use existing Jianghuai production facilities, according to a source familiar with the matter. The joint venture project is expected to kick off next month.
The cooperation will improve JAC's productive technology and R&D (research and development) capacity. After gaining support from Caterpillar and Navistar, the Chinese automaker will speed up its regional restructuring.
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.
Gasgoo: auto parts source
