Navistar and TuSimple Partner to Bring Autonomous Trucks to Market, Navistar Invests in Autonomous Trucking Company

Rhea-AI Summary

Navistar International Corporation (NYSE: NAV) has announced a strategic partnership with TuSimple to co-develop SAE Level 4 self-driving trucks, expected to be in production by 2024. This collaboration builds on over two years of technical relationship and includes Navistar taking a minority stake in TuSimple. The integration aims to enhance safety and efficiency in the $800 billion U.S. trucking industry, with plans for mass production accessible through Navistar's sales channels in the U.S., Canada, and Mexico.

Positive

• Strategic partnership with TuSimple to co-develop Level 4 self-driving trucks.
• Navistar's investment in TuSimple signifies commitment to autonomous technology.
• Potential for significant impact on the $800 billion U.S. trucking industry through increased efficiency and reduced costs.

Negative

• None.

LISLE, Ill., July 15, 2020 /PRNewswire/ -- Navistar International Corporation (NYSE: NAV), a producer of International^® brand commercial trucks, proprietary diesel engines, and IC Bus^® brand school and commercial buses, and TuSimple, a global self-driving technology company, announced today that the two entities have entered into a strategic partnership to co-develop SAE Level 4 self-driving trucks targeted for production by 2024. The strategic partnership is the result of a successful technical relationship between the companies for more than two years. In addition, Navistar has taken a minority stake in TuSimple.

"Autonomous technology is entering our industry and will have a profound impact on our customers' businesses," said Persio Lisboa, President and CEO, Navistar. "Navistar's strategic partnership with TuSimple positions us to be a leader in developing solutions for our customers by leveraging our organizations' collective expertise to integrate our vehicle design and systems integration capabilities with TuSimple's innovative autonomous technology. This announcement marks a significant milestone in our development journey with TuSimple and we look forward to furthering our relationship in the months to come."

Navistar brings 113 years of experience in developing commercial vehicles and bringing them to the market under the International and IC Bus brands. The program between TuSimple and Navistar will ensure a fully integrated engineering solution that will be ready for mass-production using Navistar's vehicle manufacturing capabilities. Customers will be able to purchase the fully autonomous trucks through Navistar's traditional sales channels in the United States, Canada and Mexico.

"TuSimple and Navistar began joint development of pre-production units in 2018 and now we are kicking-off a full go-to-market production program," said Cheng Lu, President, TuSimple. "We are honored to be partnered with Navistar. The investment in TuSimple and the partnership with Navistar marks an important milestone for our company. With the combined expertise of Navistar and TuSimple, we have a clear path to commercialize self-driving Class 8 trucks at scale."

This partnership propels TuSimple's aims to transform the $800 billion U.S. trucking industry by enhancing safety, increasing efficiency and significantly reducing operating costs. Last December, TuSimple announced results of a study conducted at the University of California San Diego that show the company's autonomous driving technology reduced fuel consumption in heavy-duty trucks by 10% when compared to traditional operations.

The company operates a fleet of 40 self-driving trucks in the U.S., shipping freight autonomously for companies such as UPS and McLane Company between Arizona and Texas. TuSimple plans to demonstrate completely driverless operations in 2021.

About Navistar
Navistar International Corporation (NYSE: NAV) is a holding company whose subsidiaries and affiliates produce International^® brand commercial trucks, proprietary diesel engines, and IC Bus^® brand school and commercial buses. An affiliate also provides truck and diesel engine service parts. Another affiliate offers financing services. Additional information is available at www.Navistar.com

About TuSimple
TuSimple is a self-driving technology company headquartered in San Diego, California with facilities in Tucson, Shanghai, and Beijing. TuSimple is developing a commercial-ready Level 4 (SAE) fully autonomous driving solution for long-haul heavy-duty trucks. TuSimple is the only self-driving truck company capable of driving on highways and surface streets without human intervention. The company was founded in 2015 with a mission to improve the safety and efficiency of the trucking industry and today is considered the industry leader in autonomous trucking technology.

For more information and to access the TuSimple media kit please visit tusimple.com/media

 

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SOURCE Navistar International Corporation

FAQ

What is the partnership between Navistar and TuSimple about?

Navistar and TuSimple have partnered to co-develop SAE Level 4 self-driving trucks, targeting production by 2024.

How does Navistar plan to utilize TuSimple's technology?

Navistar aims to integrate its vehicle design and systems expertise with TuSimple's autonomous technology for commercial trucks.

What is the significance of Navistar's investment in TuSimple?

Navistar's investment reflects its commitment to embracing autonomous technology within the trucking industry.

Where will the autonomous trucks be available for purchase?

The fully autonomous trucks will be available through Navistar's traditional sales channels in the U.S., Canada, and Mexico.

What are the expected benefits of the Navistar and TuSimple collaboration?

The partnership is expected to enhance safety, increase efficiency, and reduce operating costs in the trucking industry.