International teams with MAN

Navistar International Corp. and Germany's MAN Nutzfahrzeuge AG (MAN) have inked a strategic agreement to collaborate on design, development, sourcing and manufacturing of components and systems for commercial trucks. Both MAN and Navistar International, through its operating company International Truck and Engine Corp., produce trucks, buses and diesel engines. While the primary market for International

Navistar International Corp. and Germany's MAN Nutzfahrzeuge AG (MAN) have inked a “strategic agreement to collaborate on design, development, sourcing and manufacturing of components and systems for commercial trucks.”

Both MAN and Navistar International, through its operating company International Truck and Engine Corp., produce trucks, buses and diesel engines. While the primary market for International is North and South America, MAN operates mainly in Europe.

The deal would leave the two OEMs fully independent but would allow them to combine their manufacturing and sourcing volume, as well as let them share in development costs, MAN stated.

“This agreement is one of a number of opportunities we are exploring for strategic growth to achieve long-term success and meet our goal of reaching $15 billion in revenues and commensurate returns by the end of the current business cycle,” said Navistar chairman, president, & CEO Daniel C. Ustian.

“We have a strategic collaboration agreement with MAN and we are exploring a number of opportunities to expand out International engine product line and to offer the value of integrated products for our customers,” added International Engine Group president Jack Allen.

“With this alliance we aim to reach world-class volumes for systems and heavy truck engines, giving us considerable synergies, economies of scale and flexibility in supplying plants,” said Hakan Samuelsson, CEO of MAN.

Industry analyst Chris Brady, president of Commercial Motor Vehicle Consulting, told Fleet Owner that the partnership is a result of the recent acceleration in diesel emissions standards in both the U.S. and Europe.

“On both sides of the Atlantic,” said Brady, “there's pressure on engine makers to develop engines that conform to tighter emissions standards, which is costly.”

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