MEXICO CITY (September 4, 2008) Two leading companies based in Latin America intend to form a partnership to help meet the growing demand for public and commercial transportation solutions around the globe.
Camiones y Motores International de Mexico, S.A. de C.V. (“CMI”), the Mexico-based subsidiary of Navistar, Inc. and San Marino Ônibus e Implementos LTDA (“San Marino”), a Brazilian bus body builder, have signed a memorandum of understanding to form a joint venture to manufacture commercial bus bodies, which will be distributed as commercial integrated buses through the IC Bus Dealer channel beginning in 2009.
“A JV with San Marino, one of the most respected Brazilian bus body manufacturers, gives Navistar the opportunity to more quickly provide global integrated commercial buses through our IC Bus brand,” said John McKinney, Vice President and General Manager of IC Bus. “The fact is that we need more buses in the places where cars are not the standard – or even preferred – mode of transportation.”
The companies estimate that the global market for commercial buses is upwards of 300,000 units annually and will continue to grow as markets such as Russia, India and the Middle East move forward with continued infrastructure development.
“The vast majority of the commercial bus market resides outside of North America,” said Edson Tomiello, President of San Marino. “These global markets are growing quickly and Navistar’s expertise in designing integrated buses will help us get to market much faster than if either company tried to do it alone.”
The proposed venture is expected to begin by serving the Mexico and Latin American market with mid-size and midibus models distributed under the IC brand. Future growth potential includes expanding sales into additional products and other world markets, including the United States and Canada.
Navistar International Corporation (NYSE: NAV) produces International® brand commercial and military vehicles, MaxxForce™ brand diesel engines, IC brand school and commercial buses, and Workhorse® brand chassis for motor homes and step vans, and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. Navistar is also a provider of truck and diesel engine parts. Another affiliate offers financing services. Additional information is available at: www.navistar.com.
About IC Bus, LLC
IC Bus, LLC of Warrenville, Ill., is a wholly owned affiliate of Navistar International Corporation (NYSE: NAV). The nation’s largest manufacturer of school buses, IC Bus is a leader in passenger protection, chassis design, engines and ergonomics. The company is also a producer of commercial buses. All IC buses are sold, serviced and supported through a renowned dealer network that offers an integrated customer program encompassing parts, training and service. Additional information is available site at www.icbus.com.
About San Marino
San Marino Ônibus e Implementos Ltda develops vehicles for passenger transportation under the Neobus brand, exporting to the Americas, Africa and Middle East. Neobus product range includes midi and feeder vehicles, heavy transit and articulated buses, as well as intercity and long-distance coaches. Additional information available at www.neobus.com.br.
Media Contacts: Roy Wiley, Navistar, 630-753-2627
Bruno Bettoni, Neobus, 5554-3026-2241
Investor contact: Heather Kos, 630-753-2406
Web site: www.Navistar.com/newsroom