Navistar Subsidiary Inks Bus JV

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., the Mexico-based subsidiary of Navistar, Inc. and San Marino Ônibus e Implementos LTDA, 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.

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