Tag Archive for 'Navistar'


  • image003Navistar and Volkswagen Truck & Bus to pursue strategic technology collaboration and establish procurement joint venture with Volkswagen Truck & Bus taking a 16.6% stake in Navistar
  • Volkswagen Truck & Bus to invest $256 million in Navistar at $15.76 per share and have the right to appoint two directors to Navistar’s board of directors
  • Alliance will uniquely position Navistar to provide best-in-class products and services to customers
  • Navistar expects to realize cumulative synergies of $500 million over first five years

 Navistar International Corporation (NYSE: NAV) today announced that it has formed a wide-ranging strategic alliance with Volkswagen Truck & Bus, which includes an equity investment in Navistar by Volkswagen Truck & Bus and framework agreements for strategic technology and supply collaboration and a procurement joint venture.

The agreements expected to be entered into in connection with the alliance will enable Navistar to offer customers expanded access to leading-edge products and services through collaboration on technology and the licensing and supply of Volkswagen Truck & Bus’s products and components, while better optimizing its product development spend. The alliance will also strengthen Navistar’s liquidity position. In addition, the procurement joint venture is expected to leverage the purchasing power of Volkswagen Truck & Bus’s three major truck brands, Scania, MAN and Volkswagen Caminhões e Ônibus, in addition to Navistar’s own International® and IC Bus brands, providing Navistar with enhanced global scale.

Navistar expects significant synergies from both the strategic technology collaboration and the procurement joint venture. The company expects the alliance to be accretive beginning in the first year, and for cumulative synergies for Navistar to ramp up to at least $500 million over the first five years. By year five, it expects the alliance will generate annual synergies of at least $200 million for Navistar. This annual run rate is expected to grow materially thereafter as the companies continue to introduce technologies from the collaboration.

“We are very pleased to partner with a global leader who shares our view of the world, in an alliance that will deliver multiple benefits and is consistent with our open-integration strategy,” said Troy Clarke, President and CEO, Navistar. “Starting in the near term, this alliance will benefit our purchasing operations through global scope and scale. Over the longer term, it is intended to expand the technology options we are able to offer our customers by leveraging the best of both companies and enabling Navistar to deliver enhanced uptime. Volkswagen Truck & Bus’s equity investment will strengthen our liquidity position and expand our financial flexibility, while aligning us with a valuable strategic partner.”

“Closer collaboration among our existing brands was a top priority for our commercial vehicles business and we are well on track in this context,” said Andreas Renschler, CEO of Volkswagen Truck & Bus and member of the Board of Management of Volkswagen AG responsible for commercial vehicles. “We are now taking the next step on our way to becoming a Global Champion in the commercial vehicles industry. The strategic alliance with Navistar is an important milestone and will be very beneficial for both sides.”

Navistar will remain a leading, independent truck, bus and engine company, focused on providing best-in-class products and related services to its customers globally and delivering value for its shareholders.

“We expect this alliance will create significant global scale, yielding considerable cost savings for both companies,” said Walter Borst, Executive Vice President and Chief Financial Officer, Navistar. “We believe working collaboratively, the two companies can optimize the capital and engineering expenditures associated with next-generation truck and bus engine development, while providing both Navistar and Volkswagen Truck & Bus with opportunities for substantial procurement savings. This alliance marks another step in Navistar’s journey to be a stronger, more profitable company.”

Equity Investment

As part of the alliance, Volkswagen Truck & Bus will acquire 16.2 million newly issued shares in Navistar, representing 16.6% of post-transaction undiluted common stock (or 19.9% of pre-transaction outstanding common stock). It will pay $15.76 per share or a 25% premium over Navistar’s 90-day volume weighted average price as of August 31, 2016, or 12% over Navistar’s closing price on September 2, 2016. Navistar will receive $256 million from the equity investment to be used for general corporate purposes.

To underscore the long-term nature of the alliance, Volkswagen Truck & Bus has agreed to hold these shares for a minimum of three years. Reflective of its shareholding post-transaction, Volkswagen Truck & Bus will have the right to appoint two directors to Navistar’s board of directors.

Procurement Joint Venture

The procurement joint venture will help source parts for both companies, providing Navistar and Volkswagen Truck & Bus with greater scale and competitiveness. It will also provide additional opportunities for Navistar suppliers to gain access to potential global sourcing opportunities, and create improved pricing for end-customers.

Technology Sharing

The strategic technology and supply partnership builds on Navistar’s open integration strategy of partnering with the best global companies in the industry to integrate cutting-edge technology. It is expected the partnership will focus on powertrain technology solutions, as well as explore collaboration in all aspects of commercial vehicle development, including advanced driver assistance systems, connected vehicle solutions, platooning and autonomous technologies, electric vehicles, and cab and chassis components. This enhanced collaboration will enable the alliance to share the overall costs associated with future vehicle development.

Navistar products will benefit from Volkswagen Truck & Bus components and technology through licensing and supply agreements entered into pursuant to the framework agreement for strategic technology and supply collaboration, which longer term will generate increased parts sales.


The strategic alliance will receive oversight from an alliance board, comprising top-level executives from both parties, which will align the product development and procurement processes between the companies.

Timing and Conditions to Close

The closing of the share purchase agreement implementing the strategic alliance is subject to certain regulatory approvals, the finalization of the agreements governing the procurement joint venture and the first contract under the technology and supply framework agreement and other customary closing conditions.

J.P. Morgan is acting as financial advisor to Navistar and Sullivan & Cromwell LLC is acting as legal advisor to Navistar.



Navistar Donates Vehicle To Assist In Alabama Rebuilding Efforts

Vehicle to Aid Local Organization in Rebuilding Efforts; Donation is in Addition to $50,000 Contribution to the Governor’s Emergency Relief Fund

Navistar continues to show its commitment to the communities it serves by donating a used step van valued at $20,000 to HERO (Hale Empowerment and Revitalization Organization, Inc.) in Hale County, Alabama, to assist the organization in its rebuilding efforts in the wake of the devastating tornadoes that swept through the state of Alabama, where Navistar has significant operations.

Alan Stegich, national service director for Navistar’s Workhorse custom products business unit, and Andrea Clay, Workhorse legal and consumer affairs manager, recently presented the keys to HERO Executive Director Pam Dorr.

“This donation is a small token of how Navistar and Workhorse are giving back to the areas where employees live and work,” said William Osborne, vice president, Custom Products, Navistar.  “We are committed to ensuring the community succeeds in its rebuilding efforts.”

“The tornadoes here were quite damaging for our small area,” said Dorr. “We were not sure how to rebuild with this kind of devastation, but it is clear with this donation that we can begin getting the process moving along.”

“When I shared with Pam what our intentions were, she was almost crying on the phone,” said Clay. “Pam said they have never had such a generous donation— they always just had to piece trucks together. This will make a huge difference in hauling supplies back and forth for rebuilding homes.”

The donation of the vehicle is in addition to the $50,000 Navistar provided to the Governor’s Emergency Relief Fund (GERF), established by Alabama Governor Robert Bentley to help Alabama residents with unmet recovery needs. Donations to this fund will be used to relieve suffering caused by the spring storms. The fund, which is administered by the United Ways of Alabama, will operate on an ongoing basis to help Alabama residents who have exhausted all other avenues of disaster relief, such as FEMA, the American Red Cross, the Salvation Army and any other disaster relief programs.

In addition, employees at Navistar’s Melrose Park engine plant secured generators to assist employees at Navistar’s Huntsville engine plant when they were without power.

“Our hearts go out to the people of Alabama whose lives have been impacted by the worst domestic disaster since Hurricane Katrina,” said Eric Tech, president, Navistar Engine Group. “We believe in being a good neighbor wherever we do business and we are proud to step up and help the community in a great time of need.”

About Hale Empowerment and Revitalization Organization, Inc. (HERO)

HERO works as a catalyst for community development in areas of the Alabama Black Belt to end rural poverty. As a non-profit housing resource center, HERO provides community resources and housing education. HERO was founded in 1994 by a group of committed citizens who wanted to create a strong community focused on family. HERO is a 501c3 non-profit organization.

Navistar And Women In Trucking Award The Trucking Industry’s “2011 Influential Woman Of The Year”

Rochelle Gorman, Chief Executive Officer, CalArk International  Named Inaugural “Influential Woman of the Year”

Navistar, Inc. and the Women In Trucking Association (WIT) presented the inaugural “Influential Woman of the Year” award to Rochelle Gorman, chief executive officer, CalArk International, at a ceremony during this week’s Truckload Carriers Association (TCA) annual meeting.

“The ‘Influential Woman of the Year’ award is designed to shine a spotlight on the great leadership demonstrated by women in the trucking industry,” said Anne Belec, vice president and chief marketing officer, Navistar. “Rochelle’s dedication to trucking and her personal commitment to mentoring other women is exactly what we set out to celebrate.”

“We are excited to honor a woman who has been so influential in the trucking industry,” said Ellen Voie, president of Women In Trucking, “Rochelle is proof that women are achieving great things in all trucking professions, from drivers to accountants to CEOs. Rochelle’s story of tripling CalArk’s revenues while at the same time mentoring other women and raising a family is an inspiration as WIT furthers our mission to celebrate the success of women in what has traditionally been a very male-dominated industry.”

Gorman accepted her award immediately following a panel discussion about overcoming the challenges women often face in the trucking industry.

“Women today have the opportunity to lift each other up in ways that provide inspiration, leadership and encouragement that may not have existed when I entered the industry,” said Gorman. “We are now trusted to promote the good and positive of the trucking industry.”

Two runners-up for this year’s award were also recognized at the TCA event: Shelley Simpson, executive vice president, J.B. Hunt Transport, Inc. and Andreea Raaber, vice president, business development, Bendix Commercial Vehicle Systems, LLC.

“Navistar is proud to sponsor this award with the Women In Trucking Association to promote and recognize the leadership of influential women in our industry,” said Phyllis Cochran, president, Navistar Parts. “It is important to Navistar that the trucking industry attracts the best and brightest from a diverse pool of talent. With that goal in mind, Navistar will continue to sponsor the ‘Influential Woman’ award moving forward.”

The “Influential Woman of the Year” award seeks to recognize a woman in the trucking industry who makes or influences key decisions in a corporate, manufacturing, supplier, owner-operator, driver, sales or dealership setting. Other criteria for the award include demonstrating a record of responsibility and success in mentoring other women.

“We are very pleased with the response to the first year of this award and our judges had a difficult time selecting a winner from more than 30 well-qualified nominees” Voie added. “Our goal is to continue to build on the momentum with a call for 2012 nominations late this summer.”

Navistar Continues To Strengthen Dealer Network By Adding New Dealers In Key Markets

Navistar, Inc. announced today five changes in its dealer network that will significantly strengthen its already industry-leading distribution and service channel.

“As conditions in the truck market continue to put more pressure on our customers, we are committed to providing them with North America’s most complete and capable dealer network,” said Jack Allen, president of Navistar’s North American Truck Group. “Through the addition of these five new dealers, we are demonstrating our commitment to bring the best talent available into the International dealer channel. With a growth-oriented business plan, great products and the best after-sales support network, we’ve been able to attract and maintain the best dealers in the industry.”

Through the combination of several dealerships in southern Georgia and West Virginia, the pending ownership change in Utah/Idaho and the addition this week of new dealers in Arizona and Indiana, Navistar is changing the game in its level of distribution and customer support in these markets.

Dealerships in Southern Georgia

Following the purchase of two International Truck dealerships in southern Georgia by Yancey Bros. Co., Yancey Truck Centers was recently launched with four full-service sales, parts and service locations in Albany, Blackshear, Ga., Tifton, Ga., and Valdosta, Ga. Founded in 1914 and recognized as the nation’s oldest Caterpillar® dealer, Yancey Bros. Co. is one of the largest providers of equipment, machines, parts and service in the eastern United States, with more than 25 locations across Georgia.

Dealerships in West Virginia

Four International Truck dealership locations in West Virginia, today known as Heritage International, were purchased by Gary Kale, CEO of Heritage Equipment, Inc. Kale has years of experience serving the unique needs of the West Virginia market, especially customers in the coal industry.

Dealerships in Phoenix/Tucson, Indianapolis

During the past week, Navistar completed sales of two company-owned dealerships to private investors. The International® Truck dealerships—one located in the Phoenix/Tucson, Ariz. market and the other in the Indianapolis, Ind. market—have been successfully transitioned to industry veterans Robert Cunningham and Shelby Howard, respectively.

Howard has operated successful commercial truck dealerships in Indiana since 1992 and has a proven track record of award-winning dealership performance, having won multiple Dealer of the Year awards.

Cunningham has worked in the transportation industry since 1973 and has held executive leadership roles, including CEO, with one of the nation’s largest truckload carriers. In the late 1990s, Cunningham owned and operated one of the nation’s most successful commercial truck dealerships in the Phoenix area.

Dealerships in Utah, Idaho, Oregon

Rush Enterprises recently announced an agreement to purchase certain assets of Lake City International, which currently operates five locations in Utah, five locations in Idaho and one location in Oregon.

Founded in 1965, Rush Enterprises operates the largest network of commercial vehicle dealerships in North America with vehicle and equipment centers in 11 states throughout the Southern United States. The proposed acquisition will enable Rush to expand its geographic footprint further across the Western United States. The company also operates Rush International Truck Center in Charlotte, N.C.

“Solidifying our customer support capabilities in these important markets has been a priority for Navistar,” said John Whitnell, Navistar vice president, distribution. “Despite the challenges of the current business environment, Navistar has continued to look for opportunities to improve the structure and capability of the already strong International dealer network. We will continue to focus on the strength of the International dealer organization as an important differentiator for our customers.”

Navistar International Corporation Resolves Lawsuit Against Environmental Protection Agency

Navistar International Corporation (NYSE: NAV) yesterday reached an agreement with the Environmental Protection Agency (EPA) in which EPA promised to hold a public workshop or hearing to address issues Navistar raised in its federal court appeal of EPA’s certification policies for SCR-equipped diesel powered trucks.

Navistar had asked the United States Court of Appeals in Washington, D.C. to void those polices because the EPA had adopted them without the public process required by law, but instead following input only from the SCR engine makers. In its appeal, Navistar charged that EPA is using those policies to allow SCR- equipped diesel powered trucks to operate for extended periods without any control of NOx emissions and is certifying SCR engines as meeting NOx emission requirements when they do not.

The agreement reached yesterday provides that EPA will “engage in a public process to reexamine its policies, for future 2011 and later model year engines” during which it will “provide a thorough review of EPA’s policies regarding operation of SCR-equipped engines”. EPA also has promised to “ensure, among other things, that SCR equipped heavy duty diesel engines are designed to properly control emissions as required under applicable regulations.” The agreement must be published by EPA in the Federal Register for comment before it can become final.

“We are pleased with this agreement and look forward to participating in the public process,” said Jack Allen, president of Navistar’s North American Truck Group. “We believe that with full and open public participation, EPA will develop a new approach that will result in equal enforcement of the 2010 NOx requirements for all engine makers.”

In March, Navistar’s MaxxForce® DT mid-range diesel engines and MaxxForce® 13 big bore diesel engines were certified by the EPA for model year 2010.