WARRENVILLE, IL -- Dongfeng Chaoyang Diesel Co. (DCD), one of China’s largest diesel engine makers, and MWM International Industria De Motores Da America Do Sul Ltda. (MWMI), a subsidiary of Navistar International Corp. has signed a licensing agreement to manufacture and sell select diesel engines in China.

Under the agreement, an MWMI affiliate and DCD will establish strategic cooperation in the areas of engine development and vehicle application for diesel engines on Chinese vehicles.

Specific terms of the agreement are not being disclosed by either company, and the agreement is subject to Chinese Government approval.

According to Daniel Ustian, Navistar's chairman, president and chief executive officer, this cooperative effort is in line with the company's strategy to tap into the growth markets in China.

Initial estimated annual volumes are expected to be 40,000 to 50,000 engines per year and start of production is forecasted in early 2008. The agreement may be extended to other engine families and other countries in the region.

For more information about Navistar International, go to: http://www.nav-international.com.