Navistar Completes Mahindra Venture

Posted on December 12, 2005

Navistar International Corp. has finalized its joint venture with India’s Mahindra & Mahindra Ltd. to make trucks and buses for Indian and export markets. Navistar will own 49% in the joint venture, named Mahindra International, with Mahindra holding a 51% share.

The joint venture will produce commercial trucks and buses starting in 2007 in an updated Mahindra facility. The factory will include cab assembly, vehicle assembly and a paint shop. The vehicles will have 90% locall content. The combined investment of the two companies in the venture, first announced in June, will be more than $80 million over the next two to three years, Navistar said.

The venture will use Mahindra & Mahindra's distribution network to launch a range of medium and heavy commercial vehicles based on the Navistar unit's existing product platforms, Navistar said. The venture also is expected to export vehicles through its own distribution channel, as well as Navistar's and Mahindra & Mahindra's overseas networks.