February 12, 2013
Navistar International Corporation announced Tuesday that Mahindra & Mahindra Ltd. has completed the purchase of Navistar Group’s stake in Mahindra Navistar Automotives Ltd (MNAL) and Mahindra Navistar Engines Pvt Ltd (MNEPL).
Mahindra takes sole ownership of the operations and will continue to sell MNAL and MNEPL products.
“Mahindra remains committed to growing its presence in the Indian commercial vehicle industry with Mahindra’s Truck and Engine businesses continuing to play a critical role in helping us achieve this goal,” said Dr. Pawan Goenka, President of Automotive and Farm Equipment Sectors for Mahindra & Mahindra Ltd.
“Mahindra has been a valuable partner these last seven years and they are well equipped to move the MNAL and MNEPL businesses forward as the Indian market continues to develop,” said Troy Clarke , president and chief operating officer, Navistar. “We thank Mahindra for their collaboration and appreciate their support in our decision to redirect our resources to other near-term opportunities for Navistar.”
Navistar announced in December intention to exit the joint ventures as part of its “Drive to Deliver” turnaround strategy, which is focused on strengthening its North American core businesses and pursuing near-term initiatives to improve the company’s return on invested capital performance.
The agreement allows Navistar to source components from India while Mahindra continues to provide engineering to Navistar. The Navistar group will continue to support M&M through license agreements and extend necessary support to MNAL and MNEPL for the purposes of business continuity.