Navistar International Corporation (NYSE:NAV) and Caterpillar Inc. closed a joint venture transaction resulting in a new company, NC2 Global LLC, 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.
Key Executive Team in Place
Bob Iacullo has been named Chief Financial Officer for NC2. Formerly Business Resource Manager for Caterpillar’s Infrastructure Product Development Division, Iacullo also held several executive positions in finance at Motorola.
Navistar and Caterpillar also have named key business unit directors for product development, sales and marketing, dealer operations, production, supply chain, and parts and service.
“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.”
Navistar and Caterpillar each have named three people to NC2’s board of directors. Caterpillar Group President Doug Oberhelman will serve as Chairman of the Board and Navistar Truck Group President Dee Kapur has been named lead director from Navistar.
“The formation of this joint venture represents a long-term strategic decision,”
Oberhelman says. “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.”
NC2 Global Manufacturing and Distribution Venture
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 cab- over truck designs and will be sold under both the CAT and International (Navistar) brands.
North American Venture
Separately, Navistar and Caterpillar 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 facility, will be sold and serviced through the CAT North American Dealer network. Caterpillar vocational trucks are scheduled for full production in mid 2011.
Navistar International Corporation traces its roots to 1831 and the former McCormick and International Harvester companies. Today it is the largest North American producer of mid-range diesel engines and class 6-8 commercial trucks and buses. Navistar, through its Defense Systems Group, is the leading producer of Mine Resistant Ambush Protected (MRAP) vehicles for the Department of Defense, safeguarding the American war fighter. The company produces International® brand commercial trucks, MaxxForce brand diesel engines, IC brand school and commercial buses, and Workhorse brand chassis for motor homes and step vans, and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. Navistar is also a provider of truck and diesel engine parts. A wholly owned subsidiary offers financing services. Additional information is available at: www.navistar.com
For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2008 sales and revenues of $51.324 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at http://www.cat.com.
Navistar and Caterpillar Announce Global Truck Joint Venture NC2 Addendum
Risk Factors of our Form 10-K for the fiscal year ended October 31, 2008, which was filed on December 30, 2008 as modified by Item 1A, Risk Factors of our Form 10-Q for the first quarter ended January 31, 2009, which was filed on March 11, 2009. Although we believe that these forward-looking statements are based on reasonable assumptions, there are many factors that could affect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. All future written and oral forward-looking statements by us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. Except for our ongoing obligations to disclose material information as required by the federal securities laws, we do not have any obligations or intention to release publicly any revisions to any forward-looking statements to reflect events or circumstances in the future or to reflect the occurrence of unanticipated events.