August 20, 2008
Navistar, American LaFrance Plan Vocational Truck Joint Venture
WARRENVILLE, IL – Navistar, Inc. and American LaFrance, LLC have new plans to work together to
develop, manufacture, and support low cab-over engine (LCOE) vocational trucks. The two companies will launch a joint venture that will
combine the strengths and resources of both companies to manufacture and
distribute vocational trucks for domestic and global markets.
The initial product focus will target the refuse and
construction segments with future products planned for additional vocational
markets. Through the venture, the American LaFrance Summerville, SC,
manufacturing facility will become the manufacturing hub for the new products.
“We believe the strengths of our vocational line are
exponentially enhanced when combined with the proprietary components, engines
and distribution of Navistar,” said Patriarch Partners Chief Executive Lynn
Tilton. “This will be an exciting journey to build a broad global product
offering and we are honored to combine the talents and names of Navistar and
American LaFrance.”
The joint venture will build upon the engineering platform
of American LaFrance and further enhance the product offering with proprietary
Navistar components. Navistar engines will be incorporated within the product
offering providing a clear advantage for the new line of trucks heading into
the 2010 EPA emission requirements.
The companies have commissioned teams to focus on truck and
engine opportunities. The initiatives contemplated by the Term Sheet are
subject to completion of due diligence, execution of definitive agreements, and
regulatory approvals.