Truck maker Navistar International (NAV) - Get Report and German automaker Volkswagen's Truck and Bus, a subsidiary of Volkswagen (VLKAY) , and a leading commercial vehicle manufacturer, said on Monday that they will introduce an electric medium-duty truck in North America by 2019.
The two will also work to develop common hardware and systems to provide the trucks with Internet connectivity.
"This alliance with Volkswagen Truck & Bus marks a significant milestone in our company's history, and we expect it will create multiple benefits for both companies in both the near and long term," said Troy Clarke, Chairman, President and CEO, Navistar.
"Now that the transaction has closed, we will move quickly to collaborate with an industry-leading, strategic partner to increase our global scale, strengthen our competitiveness, and provide our customers with expanded access to cutting-edge products, technology and services," he added.
Shares of Navistar were climbing higher over 2% in afternoon trading on Monday.
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