MWM International Industria De Motores Da America Do Sul Ltda.(MWMI), a subsidiary of Navistar International Corp. announced Thursday that Dongfeng Chaoyang Diesel Co. (DCD), one of China’s largest diesel engine makers, has been licensed to manufacture and sell select diesel engines in China.
DCD and an MWMI affiliate, under the licensing agreement, will set up strategic cooperation for engine development and vehicle application for diesel engines on Chinese vehicles.
Neither company has disclosed specific terms of the agreement. The agreement is subject to approval by the Chinese government.
Production is expected to start in early 2008, with 40,000 to 50,000 engines manufactured annually.
The agreement might be extended to include other engine models and other countries in the region.