International, Monaco to form diesel chassis joint venture

International Truck and Engine Corporation on January 25 announced it has signed a definitive agreement to form a joint venture with Monaco Coach Corporation, one of the nation’s leading manufacturers of recreational vehicles, to manufacture rear engine diesel chassis.

International is the principal operating company of Navistar International Corporation.

Under the joint venture agreement, International will own 51 percent and Monaco Coach will own 49 percent of the newly formed company called Custom Chassis Products LLC. Initial plans call for the joint venture to manufacture more than 5,000 diesel chassis in the first year.

“The opportunity to team up our best-in-class chassis with the resources of International Truck and Engine will allow Monaco Coach to fine tune what we are already building and grow our business with additional one-of-a kind chassis designs,” said Kay Toolson, chairman and CEO of Monaco Coach Corporation.

Tom Cellitti, vice president and general manager of International’s medium vehicle center, said, “This exciting development further strengthens International’s commitment and capabilities within the RV market. The acquisition of Workhorse in late 2005, coupled with this announcement, positions us as a true full line supplier of chassis to the RV market.”

The transaction, which will be subject to customary closing conditions, is expected to close in February. The joint venture will begin production in February, and Monaco Coach Corporation will lease its 210,000-square-foot Roadmaster chassis plant, located in Elkhart, Ind., to the joint venture.