Mahindra & Mahindra Ltd. has completed its purchase of the Navistar Group’s stake in the joint ventures between the two companies. Mahindra has taken complete ownership of Mahindra Navistar Automotives Ltd. (MNAL) and Mahindra Navistar Engines Pvt Ltd. (MNEPL), and will continue to sell the products.
"Mahindra has been a valuable partner these last seven years and they are well equipped to move the MNAL and MNEPL businesses forward as the Indian market continues to develop," said Troy Clarke, president and chief operating officer of Navistar. "We thank Mahindra for their collaboration and appreciate their support in our decision to redirect our resources to other near-term opportunities for Navistar."
Navistar announced in December 2012 its intention to exit the joint ventures as part of its "Drive to Deliver" turnaround strategy, which is focused on strengthening its North American core businesses and pursuing near-term initiatives to improve the company's return on invested capital performance.
As announced in December 2012, the agreement allows Navistar to continue sourcing components from India while Mahindra would continue to provide engineering services to Navistar. The Navistar group will continue to support Mahindra through license agreements and extend necessary support to MNAL and MNEPL for the purposes of business continuity.