PEORIA, Ill. (AP) -- Heavy equipment maker Caterpillar Inc. and Navistar International Corp., which produces diesel engines and trucks, said Monday they have signed a deal to produce Caterpillar heavy-duty trucks for sale in North America.
Peoria, Ill.-based Caterpillar and Warrenville, Ill.-based Navistar also agreed to form a 50-50 joint venture to develop, manufacture and distribute commercial trucks in regions outside of North America and India.
Financial terms were not disclosed. The joint venture deal is subject to regulatory approvals and other closing conditions.
Last June, the companies announced that they would team up to build on-highway trucks and engine platforms and work together to pursue global commercial truck opportunities outside of North America.
The first products under the joint venture, which will be sold under both the Caterpillar and International brands, are expected to be available as early as the third quarter of 2009.
Under the North American alliance, the new Caterpillar trucks will be codeveloped by Caterpillar and Navistar and made in Navistar's Garland, Texas facility. The trucks, which will be sold and serviced exclusively by North American Caterpillar Dealers, will be unveiled in late 2010 and go into full production in early 2011.
Caterpillar shares lost 84 cents, or 2.6 percent, to close at $31.31 on Monday. Navistar shares gained $1.18, or 3.8 percent, to finish at $31.93.