Navistar acquires Continental's components business

The aim of the acquisition, renamed Pure Power Technologies LLC, is to vertically integrate research and development, engineering and manufacturing capabilities to produce world-class diesel power systems and advanced emissions control systems for Navistar.

The Trucker News Services

11/3/2009

WARRENVILLE, Ill. — Navistar, Inc. has finalized a deal to acquire Continental Diesel Systems US LLC’s fuel injection components business to supply its MaxxForce diesel engines, the company said Nov. 2. Navistar also will establish a dedicated research and development facility to support Navistar’s diesel power system components.

The aim of the acquisition, renamed Pure Power Technologies LLC, is to vertically integrate research and development, engineering and manufacturing capabilities to produce world-class 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 CEO, calling the new unit a “technology incubator” for MaxxForce 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, according to Navistar. 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.

Pure Power Technologies supports a number of Navistar’s strategic business goals: Ensure the continued delivery of innovative MaxxForce brand engines to the North American on-highway marketplace, including MaxxForce Advanced EGR emissions technology for 2010 and beyond; grow in other automotive and industrial segments in NAFTA countries; partner with new OEM customers in established and emerging markets under Euro emissions regulations; create a global platform for continuous improvement in product quality, performance and fuel-efficiency; develop common quality and manufacturing processes across our engine operations and joint ventures; and support Navistar Global Truck Group and Navistar Global Bus division in non-NAFTA growth areas, Navistar said.

Kevin Jones of The Trucker staff can be reached for comment at kevinj@thetrucker.com.

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