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Navistar Acquires Diesel Engine Components Business From Continental, Forms New Operating Company

Navistar, Inc., concluded an agreement to acquire certain assets and the membership interests of Continental Diesel Systems US, LLC, to manufacture key fuel injection components for Navistar MaxxForce diesel engines. The company also will establish a dedicated research and development facility to support Navistar’s diesel power system components.

The company, renamed Pure Power Technologies, LLC, will further vertically integrate research and development, engineering and manufacturing capabilities to produce world-class diesel power systems and advanced emissions control systems.

Based in Columbia, South Carolina, Pure Power Technologies will operate a research and development center there as well as a manufacturing plant in nearby Blythewood, South Carolina. The Columbia and Blythewood facilities are former Continental assets. Further, the acquisition of these Continental facilities by Navistar prevents their closing as previously announced by Continental. Navistar and Continental will be working on a product transition plan between now and January to assure the needs of both companies are met.

Housing our advanced manufacturing technology team near the R&D campus will be a key differentiator for Pure Power Technologies. This will enhance our ability to quickly bring new technologies to market.

—Eric Tech, president, Navistar Engine Group

Pure Power Technologies supports a number of Navistar’s strategic business goals: Ensure the continued delivery of innovative MaxxForce brand engines to the North American on-highway marketplace, including MaxxForce Advanced EGR emissions technology for 2010 and beyond; grow in other automotive and industrial segments in NAFTA countries; partner with new OEM customers in established and emerging markets under Euro emissions regulations; create a global platform for continuous improvement in product quality, performance and fuel-efficiency; develop common quality and manufacturing processes across our engine operations and joint ventures; and support Navistar Global Truck Group and Navistar Global Bus division in non-NAFTA growth areas.


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