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Navistar, American LaFrance launch JV

Navistar Inc. and American LaFrance LLC announced plans to launch a joint venture that will combine the strengths and resources of both companies to manufacture and distribute low cab-over engine (LCOE) vocational trucks for domestic and global markets.

The initial product focus will target the refuse and construction segments with future products planned for additional vocational markets. Through the venture, the American LaFrance Summerville SC manufacturing facility will become the manufacturing hub for the new products.

The joint venture will build upon the engineering platform of American LaFrance and further enhance the product offering with proprietary Navistar components. Navistar engines will be incorporated within the product offering, providing an advantage for the new line of trucks heading into the 2010 EPA emission requirements.

The companies have commissioned teams to focus on truck and engine opportunities. Initiatives contemplated by the term sheet are subject to completion of due diligence, execution of definitive agreements, and regulatory approvals.

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