Caterpillar Inc. and Navistar International Corp. are finalising a 4 billion yuan ($586 million) truck and engine manufacturing tie-up with China’s Jianghuai Auto, a source with direct knowledge of the deal said on Friday, as they move to secure a foothold in the world’s largest auto market.
Global truck giants, such as Daimler AG and MAN, are increasingly turning to China where demand for heavy vehicles is strong because of an infrastructure construction boom, fuelled by Beijing’s 4 trillion yuan economic stimulus package.