Navistar and Siemens to form fuel injector joint venture

17 September 1998

Navistar International Corporation and Siemens Automotive Systems Group, Regensburg, Germany, announced their intent to form a joint venture to develop and manufacture proprietary "next generation" diesel fuel injectors incorporating digital valve technology.

Under the joint venture, Siemens and Navistar will co-manufacture electronically controlled, hydraulically actuated high pressure injectors for use in diesel fuel systems designed and manufactured by Navistar's Engine & Foundry Division. The joint venture is expected to bring the digital valve technology to market between 2001 and 2002. This technology involves a high speed capability to more precisely control fuel injection and improve performance.

The Navistar digital valve technology is believed to be based on the Sturman Industries system. This technology lead the two companies to the formation of a joint venture company, Sturman Engine Systems, in early 1997. Navistar has been using (and holds patents on) the HEUI fuel system now manufactured by Caterpillar's Fuel System business unit headquartered in Pontiac, IL.

The new fuel injection system is intended for heavy, medium and light applications. Navistar expects the system will help to meet the US 2004 diesel emission standards in advance of the regulated compliance deadline. Details of the agreement between Navistar and Siemens are expected to be disclosed in the next few weeks, after the deal has been signed.

Navistar, with annual sales of $6.4 billion, manufactures medium, heavy and severe service trucks, and school buses, as well as a range of 160 to 300 horsepower diesel engines.

Siemens Automotive Systems Group is a tier-one supplier of automotive electrical-electronic components and systems with a sales volume likely to exceed $3 billion in fiscal year 1997/98. Siemens Automotive Systems Group is part of Siemens AG, one of the largest electrical-electronic engineering companies in the world, generating sales of more than $64 billion in 1997, Siemens AG employs some 386,000 people worldwide.

Source: Navistar International Corp.