Ford, Navistar in commercial truck venture
DEARBORN, Mich. (Feb. 12, 2001) — Four years after selling most of its commercial truck business, Ford Motor Co. is poised to jump back in.
Ford, the world’s No. 2 automaker, said it has an agreed to build medium-duty trucks with Navistar International Corp. in a 50-50 joint venture.
The two companies will produce a common chassis with a cab and interior that will be distinct for the Ford and Navistar’s International brands, Ford said.
The trucks will be sold separately through each brand’s dealers. The companies also will establish a North American commercial truck service parts program.
In addition, they intend to explore opportunities for greater co-operation in diesel engines for potential applications in Ford’s full range of truck products. Navistar currently supplies Ford with its PowerStroke engine.
The joint venture is subject to regulatory approval, due diligence, and final agreement on the business details. Ford said neither company will have an equity stake in the other’s parent company.
The trucks will be built at Navistar’s plant in Escobedo, Mexico.
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