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Coburg, Ore.-based Monaco Coach Corp. today (Jan. 25) announced it has signed a definitive agreement to form a joint venture with International Truck and Engine Corp. to manufacture rear-engine diesel chassis.
Under the joint venture agreement, Monaco and International will own 49% and 51%, respectively, of the newly formed company called Custom Chassis Products LLC. The deal is expected to close in February.
Monaco said it will lease its 210,00-square-foot Roadmaster chassis plant in Elkhart, Ind., for production of the chassis. Initial plans call for the company 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, Monaco chairman and CEO.
“This exciting development further strengthens International’s commitment and capabilities within the RV market,” said Tom Cellitti, vice president and general manager of Medium Vehicle Center for International, an operating company of Navistar International Corp. “The acquisition of Workhorse in late 2005, coupled with this announcement, positions the company as a true full-line supplier of chassis to the RV market.”