Dina to Negotiate Contract Cancellation Terms

Management of Consorcio G Grupo Dina SA de CV intends to meet with executives of Western Star Trucks in order to negotiate terms of the termination of its contract to supply trucks.

The Mexico-based OEM signed a 10-year contract in September 1999 that called for export of 9,000 Dina Class 7 Solar Series trucks for sale in Canada, Australia, and the United States over a three-year period. The contract was canceled by Freightliner LLC, Western Star's new parent company, recently.

According to contract terms, the termination will become effective in 60 days. Freightliner said a marketing alliance with Dina or any third party "does not fit well with its long-range strategic plans."

If an agreement is not reached between Dina and Freightliner LLC within 30 days, Dina said it will seek arbitration as stipulated in the contract.

Dina officials said they are interested in negotiating a resolution, although management has not dismissed the possibility of taking legal action to resolve this matter. Dina has delivered about 700 of the 2,000 units that were to be shipped during the first year. Freightliner officials said that only about 60 of the vehicles have been sold thus far.

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