International Truck and Engine Corp., a unit of Navistar International, said Thursday it will form a joint venture with Monaco Coach Corp. to manufacture rear engine diesel chassis.
Under the joint venture agreement, International will own 51 percent and Monaco Coach will own 49 percent of the newly formed company, called Custom Chassis Products LLC. Initial plans call for the joint venture to manufacture more than 5,000 diesel chassis in the first year.
The joint venture will begin production in February, and Monaco Coach Corporation will lease its 210,000 square foot Roadmaster chassis plant, located in Elkhart, Ind. to the joint venture.
“The opportunity to team up our best-in-class chassis with the resources of International Truck and Engine will allow Monaco Coach to fine tune what we are already building and grow our business with additional one-of-a kind chassis designs,” said Kay Toolson, chairman and CEO of Monaco.
The transaction is expected to close in February.