ZF/IH deal
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ZF and International Harvester have signed a letter of intent to form two jointly owned transmission companies, one in the UK and one in France, to manufacture transaxles for agricultural and off-road equipment.
IH's existing plant and employees at Doncaster and St Dizier will be used to manufacture the transaxles which are currently being built by ZF at its Passau factory in West Germany.
ZF will hold the controlling interest in both companies and though IH will use the transaxle in its agricultural tractors, the transmissions will continue to be sold to other manufacturers of off-road equipment.
The ZF/IH agreement is another example of how both companies have begun to enter into collaborative ventures wherever possible. IH for exmaple, recently announced that it had agreed to co-operate with General Automatic Corporation of Michigan in the development of "special purpose vehicles" in the USA.