Mahindra competes purchase of Navistar stake in India joint venture
| February 12, 2013 |
It was announced this morning that with regulatory approval in India, Mahindra & Mahindra Ltd. completed its purchase of the Navistar Group’s stake in Mahindra Navistar Automotives Ltd (MNAL) and Mahindra Navistar Engines Pvt Ltd (MNEPL).
Mahindra has now taken complete ownership of the operations and will continue to sell MNAL and MNEPL products. The agreement allows Navistar to continue sourcing components from Mahindra in India while Mahindra will continue to provide engineering services to Navistar. Navistar will continue to support Mahindra through license agreements and extend necessary support to MNAL and MNEPL.
In December, Navistar announced its intention to exit the joint ventures as part of a turnaround strategy focused on strengthening its North American core businesses and improving the company’s return on investment performance.
“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, Automotive and Farm Equipment Sectors, 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.”