Navistar, Inc. and Anhui Jianghuai Automobile Co. Ltd. (JAC) will explore a potential engine joint venture to develop, build and market advanced diesel engines for commercial vehicles in China. The potential joint venture, if formed, would have a 50/50 ownership between Navistar, a U.S.-based maker of commercial vehicles, motor coaches and diesel engines, and JAC, a China-based maker of commercial and consumer vehicles and engines.

The proposed JV would establish a research and design center in China’s Anhui province for application engineering development, product design and technology advancements.

Diesel engines produced by the new venture would primarily be used in China, as well as certain export markets.