"Our alliance with Volkswagen Truck & Bus is allowing us to move much more quickly into electric propulsion thanks to our ability to leverage their technology investments and components in segments of the market where we're already a leader," said Troy A. Clarke, Chairman, President and Chief Executive Officer, Navistar.
"We believe the Class 6/7 vehicle is ideal for electric powertrain solutions in the near term, given its abundance of packaging space and that these vehicles typically run short distances and can depot to recharge at the end of the day."
Navistar says it expects to be in a position to launch its first medium-duty electric-powered vehicle in late 2019 or early 2020.
The maker of International Trucks and IC Buses also confirmed that it is collaborating with its alliance partner on introducing fully integrated, next-generation diesel big-bore powertrains for North America, launching in 2021.
Navistar and Volkswagen Truck & Bus also announced their intention to converge their respective connectivity activities to a Volkswagen Truck & Bus global connected vehicle platform. The first step will be the adoption of common, in-cab connecting device hardware. This would serve as a major step toward creating a global connected platform, covering roughly 650,000 vehicles worldwide.
"This will make it the world's largest global ecosystem for commercial vehicles, once the migration is completed," Clarke said.
Volkswagen Truck & Bus expects to launch the cloud-based, brand-independent platform by the end of the year.
Andreas Renschler, CEO of Volkswagen Truck & Bus, said the development of global platform was crucial.
"Future transportation will massively be building on connectivity as this will make our world much more efficient," he said.
"The ecosystem we are about to create with our common platform will drive our strategic alliance to the next level."