BEIJING, China — Caterpillar and Navistar International, which are already collaborating in heavy equipment markets all over the world, are making progress with China’s Jianghuai Automobile Group in joint venture discussions.
Reuters reports that the companies see such a partnership as a way to target export markets and cracking emerging markets in Asia.
Jin An, president of Jianghuai, told a conference in Beijing that talks aimed at completing a joint-venture targeting China’s commercial truck market is making progress, according to Reuters.
Jin An said the company could be open to other alliances if it bolsters affiliated brands in China.
When the Cat-Navistar alliance, called NC2 Global LLC, announced its expansion plans with Jianghuai last September, the companies said they hoped to offer years of truck and diesel experience through JAC’s brands and manufacturing plants in China.
Heavy truck sales in China more than doubled in the five-year period to 2008 to more than 540,000 units in annual sales, according to Reuters.
Unlike successful alliances between Chinese and American or European carmakers, foreign truck OEMs have made fewer footprints in China because their more upscale models are seen as expensive for local Chinese operators.
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