NAVISTAR JOINS FORD IN COMMERCIAL-VEHICLE JOINT-VENTURE

DEARBORN, Mich.– Ford Motor Company and Navistar International announced today that they intend to form a joint venture to build commercial trucks.

The alliance, yet to be named, will include production of Class 6 and 7 medium-duty commercial trucks. They will be marketed separately under the Ford brand and the International brand.

It will be a 50-50 joint venture — both companies will have equal representation on the venture’s board of directors, and neither company will have an equity stake in the other’s parent company.

They also intend to explore opportunities for greater cooperation in diesel engines for potential application in Ford’s full range of truck products.

“This alliance will be an investment in the future of both companies,” says Jim Donaldson, Ford’s group vice president of Global Business
Development.

“This joint venture will extend a strong business alliance with our biggest customer,” says John Horne, Navistar’s chairman, president and chief executive officer.

Initially, the joint venture will produce a common chassis for Class 6 and 7 commercial trucks for sale in North America.

Navistar will provide product design and engineering, vehicle assembly operations and expanded diesel engine programs.

The trucks’ cabs, interiors, nomenclature and vocational focus will be distinctly Ford or International and will be sold separately through Ford and International dealers.

Navistar’s facility in Escobedo, Mexico will build the trucks.

The joint venture will also include a joint North American commercial truck service parts program that will provide enhanced efficiency and streamlined customer service.

The alliance will also explore development of additional business ventures for diesel truck engine products for global markets.

The joint venture requires regulatory approval, due diligence and final agreement on the business details by Ford Motor Company and Navistar International Corporation.