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 Corporation today announced in a statement that DCD has been licensed to manufacture and sell select diesel engines in China. Under the licensing 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. 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. “This agreement broadens our lineup and gains us valuable strategic global partners,” said Mr. Zhao Zhuang, president of Dongfeng Chaoyang Diesel Co. “As a major diesel engine maker in China, we will continue to provide our customers with the world’s leading lineup of light commercial vehicle diesel engines.” MWMI produces a broad line of medium and heavy duty diesel engines ranging from 50 to 375 horsepower for use in pickups, SUVs, vans, light, semi and heavy trucks, and buses as well as agricultural, marine and electric generator applications. OEM customers include a number of the most important corporations in the automotive, agricultural and industrial segments, including Ford, General Motors, Land Rover, Volkswagen, Volvo, Nissan, CNH and AGCO.