Caterpillar, Navistar File Agreement For Truck-Making JV
16 Settembre 2009 - 1:14AM
Dow Jones News
Caterpillar Inc. (CAT) and Navistar International Corp. (NAV)
will put up $66 million by Nov. 1 for a new truck-making venture
and provide an additional $90 million over the next three years,
according to a regulatory filing on Tuesday.
The two Illinois companies, which have already contributed $18
million to the venture, will own a 50% share of NC2 Global LLC,
which will design, manufacturer and sell commercial trucks for
international markets. Navistar and Caterpillar also will have the
option of sourcing construction dump trucks and other vocational
vehicles from NC2 for the companies' own dealers to sell in North
America.
The operating agreement for NC2 will run for 25 years. The
venture will have eight directors. Navistar will appoint a
president for NC2, while Caterpillar will select the company's
chief financial officer. The two officers' terms will run for three
years.
The two companies expect to begin selling trucks in Australia by
the end of the year.
The venture is expected to rely heavily on the two companies'
engines, manufacturing facilties and dealers. For Caterpillar, the
world's largest construction equipment maker by sales, NC2 provides
an international outlet for the company's truck engines after
Caterpillar decided to exit the North America highway truck engine
market at the end of 2010.
Navistar, whose truck and engine sales are largely limited to
North America, is expected to grain greater access to overseas
truck markets through NC2, which is likely to rely on Caterpillar's
overseas dealer network for distribution.
Caterpillar's stock ended Tuesday up 6% at $51.70 a share, while
Navistar closed up 0.48% at $43.73 a share.
-By Bob Tita, Dow Jones Newswires; 312-750-4129;
robert.tita@dowjones.com