Navistar Acquires Engine Components Business from Continental, Forms New Operating Company - Engine Builder Magazine
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Navistar Acquires Engine Components Business from Continental, Forms New Operating Company

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Navistar Inc. has 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. As part of Navistar’s industry leadership strategy, 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.

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“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 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, S.C., Pure Power Technologies will operate a
research and development center there as well as a manufacturing plant
in nearby Blythewood, S.C. 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.

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“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.”

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“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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