29 March 1999
Navistar International Corporation and Siemens Automotive Corporation, Auburn Hills, MI, finalized a joint venture to develop and manufacture diesel fuel injectors. Capital investment in the joint venture is estimated at $100 million.
Siemens Automotive owns 51% of the joint venture, which will operate as Siemens Diesel Systems Technology, L.L.C. The joint venture is expected to reach production levels of 4 million injectors per year by 2005.
The joint venture will develop and manufacture electronically controlled, hydraulically actuated low-pressure injectors for use in diesel fuel systems manufactured by Navistar's Engine & Foundry Division. The injector will incorporate proprietary Sturman digital valve technology under license from Sturman Engine Systems, L.L.C.
Navistar will contribute expertise for the electro-hydraulic system and its applications in engines and vehicles. Siemens Automotive will contribute fuel delivery technology and high volume manufacturing capability at a yet-to-be-determined site in the southeastern United States. It anticipated that the joint venture will create 500 new jobs.
The fuel injection system is scheduled to be ready for commercial use by the 2002 model year. The new technology will benefit Navistar's International(R) brand trucks and buses, as well as products of other Navistar customers in North and South America.
Dan Ustian, Navistar group vice president and general manager of the Engine and Foundry Division, said the fuel injection system, intended for heavy, medium and light diesel engine applications, will help Navistar and its customers meet reduced diesel emission standards in advance of the 2004 compliance deadline for reduced diesel emissions set by the Environmental Protection Agency. The new injection system has been termed "Green Diesel Technology".