NORWALK, CT – (March 9, 2010) – GE (NYSE: GE), Navistar International Corporation (NYSE: NAV), a leading global manufacturer of trucks, buses and diesel engines, and Navistar Financial Corporation (NFC), a wholly owned subsidiary of Navistar, jointly announced today an expanded financing relationship under which GE Capital will become Navistar’s preferred provider of retail financing solutions to support sales of Navistar trucks and school buses in the U.S. The agreement takes effect immediately under the Navistar Capital name, with full implementation in 90 days.
GE Capital has successfully provided dealer financing to Navistar in Canada since 1986.
Navistar, based in Warrenville, IL, manufactures commercial trucks, buses, military vehicles, chassis for motor homes and step vans, and diesel engines. It is the leading manufacturer of medium- and heavy-duty trucks and school buses in North America. Its Monaco Coach subsidiary is a leading manufacturer and distributor of recreational vehicles.
A.J. Cederoth, Executive Vice President and CFO of Navistar, said, “We are very pleased to be expanding our long relationship with GE Capital. This new alliance will enable Navistar to better support our dealer network and invest more capital in what we do best, which is to manufacture and sell top-quality products.”
David Johanneson, President and CEO of Navistar Financial, said, “GE Capital is a leader in transportation financing and has been a great financing partner to our dealers in Canada for over 20 years. We look forward to working closely with GE Capital to provide a broader and more competitive set of financing options to customers in the U.S.”
Approximately 60 NFC employees who support NFC’s retail business will join GE Capital to manage this program.
“GE Capital’s financial strength, combined with the NFC team’s experience and integration with distribution, will result in a significantly stronger ability to help finance the sale of Navistar products,” said Bill McMenamin, Vice President, CFO and Treasurer, NFC.
Dan Henson, CEO, GE Capital, Americas, said, “As GE Capital has been working to become a more focused financial services company, we also continue to invest and grow our core businesses. Our expanded financing relationship with Navistar, a leader in the transportation industry, enables us to apply our nearly 40 years’ experience in transportation finance and in supporting leading OEMs and dealer networks across the U. S. economy to help drive Navistar’s growth.”
JP Morgan Securities Inc. served as advisor to Navistar on this transaction.
Navistar International Corporation (NYSE: NAV) is a holding company whose subsidiaries and affiliates produce International® brand commercial and military trucks, MaxxForce® brand diesel engines, IC Bus™ brand school and commercial buses, Monaco RV brands of recreational vehicles and Workhorse™ brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and diesel engine service parts. Navistar Financial Corporation, a wholly owned subsidiary, offers financing services. Additional information is available at www.Navistar.com/newsroom and www.navistarfinancial.com/.
About GE Capital
GE Capital offers consumers and businesses around the globe an array of financial products and services. For more information, visit gecapital.com or follow company news via Twitter (@GECapital). GE (NYSE: GE) is Imagination at Work - a diversified technology, media and financial services company focused on solving some of the world's toughest problems. Visit ge.com.
Roy Wiley (Media)
Heather Kos (Investor Relations)