Navistar/MWM Signs Chinese Diesel Deal

Posted on September 28, 2006

China’s Dongfeng Chaoyang Diesel Co. (DCD) and MWM International Industria De Motores Da America Do Sul Ltda.(MWMI), a subsidiary of Navistar International Corp. announced that DCD has been licensed to manufacture and sell select diesel engines in China.

Under the agreement, an MWMI affiliate and DCD will establish strategic cooperation in the areas of engine development and vehicle application for diesel engines on Chinese vehicles. Specific terms of the agreement are not being disclosed by either company, and the agreement is subject to Chinese Government approval.

Initial estimated annual volumes are expected to be 40,000 to 50,000 engines per year and start of production is forecasted in early 2008. The agreement may be extended to other engine families and other countries in the region.

MWMI produces a line of medium and heavy duty diesel engines ranging from 50 to 375 horsepower for use in pickups, SUVs, vans, light, semi and heavy trucks, and buses as well as agricultural, marine and electric generator applications.