Navistar and Caterpillar Announce Global Truck Joint Venture NC2

The world’s largest manufacturer of earth moving equipment is teaming up with North America’s biggest producer of mid-range diesel engines and class 6-8 commercial trucks. Caterpillar and Navistar are calling their company — NC2 Global LLC — and it’s a joint venture resulting in a new company to serve the global commercial truck market. Navistar and Caterpillar first announced plans to form a joint venture in June 2008 and have identified the leadership team of the new entity that will establish its headquarters in the Chicago area.

“Together, Navistar and Caterpillar have moved this project from concept to reality in little more than one year,” says Al Saltiel, president of NC2. “We now have a dedicated and experienced leadership team that will hit the ground running.”

Saltiel brings a wide range of global distribution and marketing experience to NC2. As vice president of marketing and head of Navistar’s marketing efforts since 2004, Saltiel was responsible for all brand, product and pricing strategy. Prior to joining Navistar, he held key senior marketing positions at Sony Electronics, Jaguar, and Ford’s Premier Automotive Group.

“NC2 will produce and market a full line of commercial on-highway trucks for markets outside of North America,” says Saltiel. “Customers will benefit from the unparalleled depth and scope of support provided by Navistar and Caterpillar’s global dealers.”

As previously announced, the 50/50 joint venture will develop, manufacture and distribute commercial trucks with an initial focus on markets including Australia, Brazil, China, Russia, South Africa and Turkey. NC2’s product line will feature both conventional and cabover truck designs and will be sold under both the Cat and International (Navistar) brands. Separately, Navistar and Caterpillar will continue to work on design and development of a new proprietary, purpose-built, heavy-duty Cat vocational truck for the North American market. The trucks, manufactured in Navistar’s Garland, Texas, will be sold and serviced through the Cat North American Dealer network. Caterpillar vocational trucks are scheduled for full production in mid-2011.

“The formation of this joint venture represents a long-term strategic decision,” said Caterpillar group president Doug Oberhelman (also chairman of the NC2 board). “Despite the current challenges facing the global economy, both Caterpillar and Navistar are dedicating the right people and investing significant resources to ensure NC2’s long-term success in the global on-highway truck market.”