GE, Navistar Form U.S. Financing Alliance

GE (NYSE: GE), Navistar International Corporation (NYSE: NAV), and Navistar Financial Corporation (NFC), a wholly owned subsidiary of Navistar, jointly announced an expanded financing relationship under which GE Capital will become Navistar’s preferred provider of retail financing solutions to support sales of Navistar trucks and school buses in the U.S. The agreement takes effect immediately under the Navistar Capital name, with full implementation in 90 days.

GE Capital has successfully provided dealer financing to Navistar in Canada since 1986.

A.J. Cederoth, Executive Vice President and CFO of Navistar, said, “We are very pleased to be expanding our long relationship with GE Capital. This new alliance will enable Navistar to better support our dealer network and invest more capital in what we do best, which is to manufacture and sell top-quality products.”

David Johanneson, President and CEO of Navistar Financial, said, “GE Capital is a leader in transportation financing and has been a great financing partner to our dealers in Canada for over 20 years. We look forward to working closely with GE Capital to provide a broader and more competitive set of financing options to customers in the U.S.”

Approximately 60 NFC employees who support NFC’s retail business will join GE Capital to manage this program.

“GE Capital’s financial strength, combined with the NFC team’s experience and integration with distribution, will result in a significantly stronger ability to help finance the sale of Navistar products,” said Bill McMenamin, Vice President, CFO and Treasurer, NFC.

JP Morgan Securities Inc. served as advisor to Navistar on this transaction.

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