Navistar Acquires Engine Components Business from Continental

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 its 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 diesel power systems and advanced emissions control systems.

“Pure Power Technologies allows Navistar to seamlessly integrate development and production of our power system component technology as we continue to grow globally,” said Daniel C. Ustian, Navistar chairman, president and chief executive officer. “This supports our industry leadership strategy to produce great products and will serve as a components technology incubator for Navistar’s MaxxForce brand engines.”

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,” said Eric Tech, president, Navistar Engine Group.

“The combined strengths that make up Pure Power Technologies will enable breakthrough performance, lean and rapid development cycles and lower overall system costs,” said Ustian. “These are critical to our business, as customers around the world continue to demand greater engine performance, more efficient power sources and cleaner running vehicles and equipment.”

“The acquisition of Continental’s diesel systems business by Navistar is a win-win situation for all parties,” said Kregg Wiggins, senior vice president NAFTA Powertrain Division for Continental. “Navistar will acquire key fuel injection technologies used in their diesel engine manufacturing business and many of the employees in the Blythewood and Columbia locations will have an opportunity to gain positions in this new entity."

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