Navistar rides stimulus grant into electric car JV

Navistar International corp. (NYSE:NAV) is creating a joint venture with Modec Ltd. to manufacture all-electric commercial trucks. The plug-in vehicles will be intended for use in urban settings and will be able to travel about 100 miles before being recharged.

The Warrenville, Ill., truck engine manufacturer in August received a $39.2 million Department of Energy grant to develop and build electric vehicles. Plans call for 400 trucks to be produced in 2010, with several thousand annually within two years. The venture, based in Elkhart, Ind., will eventually employ about 700 people.

Navistar has been driving hard into international markets, and JVs have been its go-to means of expansion. In announcing the latest deal, Navistar truck group president Dee Kapur said the partnership with Modec of the U.K.“is another example of Navistar’s strategy of growth through leveraging our own assets and those that others have built.”

Caterpillar Inc. (NYSE:CAT) is a frequent Navistar partner. The Illinois neighbors have existing ventures to make and sell heavy equipment in China, and to produce heavy-duty vocational trucks for sale in North America. Navistar also operates a joint venture with Indian manufacturer Mahindra & Mahindra Ltd.