Nav-Cat alliance seeks major Chinese merger

CHICAGO — Caterpillar and Navistar‘s global alliance is looking to make a big footprint in China and is talking to Chinese automaker with Anhui Jianghuai Automobile to build and sell commercial trucks in that part of the world.

NC2 Global LLC, which is owned by Caterpillar and Navistar, said that talks are under way to establish a jointly owned operation for medium and heavy-duty trucks, according to Dow Jones Newswires.

NC2 would offer years of truck and diesel experience through JAC’s brands and manufacturing plants in China.

JAC sold about 10,000 medium and heavy-duty trucks in 2008, along with 100,000 light-duty trucks and some 45,000 sport utility vehicles and cars.

For Caterpillar, the venture would be an opportunity to expand its existing manufacturing and distribution network in China for engines and construction machinery, while for Navistar, the deal signifies its first significant step in that market.