Navistar Engine Group, an operating unit of Navistar Inc., entered a supply agreement to develop and produce diesel engines for two new Daewoo Bus brand commercial buses for Korea and other global markets.

Under the agreement, Navistar’s Brazilian affiliate, MWM International Indústria de Motores da América do Sul Ltda., will supply the MaxxForce brand engines to Clark ENG Ltd., which develops bus products for Korea-based Daewoo Bus Corp. With production in mid-2011, annual volumes are projected to reach nearly 25,000 by 2014.

The new MaxxForce Sprint model in-line four-cylinder engines will power 6.0-ton GVW and 5.5-ton GVW Daewoo Bus brand light buses. The 3.2-liter turbodiesels feature four valves per cylinder and comply with Euro III, IV and V emissions standards.

“Navistar is excited to partner with a leader like Daewoo Bus which has a solid and growing global footprint and customer base,” said Eric Tech, Navistar Engine Group’s vice president/GM. “This is another important step in the execution of our strategy, as Navistar’s Engine Group expands its global reach and diversifies its customer base.”