PEORIA, Ill. — Caterpillar and Navistar International have finalized a deal to produce heavy-duty vocational trucks for the North American market.

The 50/50 joint venture will develop, manufacture and distribute commercial trucks in global markets outside North America as well.

“This joint venture leverages the complementary strengths of two great companies to serve global markets,” said Daniel C. Ustian, chairman, president and CEO of Navistar. “The venture will be distinctively positioned to offer customers world class on-highway trucks through the unequaled sales and service network of Cat and International dealers around the world, and the deep product expertise of Navistar.”

“We are extremely pleased with the commitment that the teams have demonstrated to make the signing of this global venture possible,” added Caterpillar chairman and CEO Jim Owens. “This is an important milestone and Caterpillar looks forward to becoming a significant player in the global on-highway truck market. Additionally, the introduction of a Cat Vocational Truck line in North America represents an exciting opportunity for Caterpillar and the Caterpillar dealer network to extend our reach in this market and offer customers a total job site solution.”

In North America, the new Caterpillar-branded trucks will be built at Navistar’s Garland, Texas plant. They will be sold and serviced through Caterpillar’s North American dealer network, the companies announced.

“The heavy-duty vocational trucks will be purpose-built to complement Caterpillar’s existing product line and will give Caterpillar dealers an unmatched ability to support customer needs from extraction through delivery,” said George Taylor, director and general manager of the Caterpillar Global On-Highway Department.

The Caterpillar trucks will be targeted towards severe-service applications such as: earth moving; quarry; waste; mining; heavy construction; logging and road construction. The industry will get its first look at the new trucks in late 2010, according to the companies, will full production slated for early 2011.