Mahindra & Mahindra have further expanded their business portfolio. The Indian manufacturer of SUVs and other vehicles has just completed its purchase of Navistar. Haven’t heard of Navistar? Navistar International Corporation produces commercial and military trucks, diesel engines, and commercial buses, as well as recreational vehicles. Mahindra and Navistar have been partners, but now Mahindra have bought the Navistar Group’s remaining stake in Mahindra Navistar Automotives (MNAL) and Mahindra Navistar Engines (MNEPL). This means that Mahindra will now have full control over both companies and Navistar will focus on its core business in North America. According to both Mahindra and Navistar the takeover has received regulatory approval in India and Mahindra has now taken complete ownership of operations and they will continue to sell MNAL and MNEPL products.
Commenting on the takeover, Dr Pawan Goenka, president Automotive and Farm Equipment Sectors for Mahindra stated, “Mahindra remains committed to growing its presence in the Indian commercial vehicle industry with Mahindra’s Truck and Engine businesses continuing to play a critical role in helping us achieve this goal”.
According to the agreement, Navistar will continue to source components from India and Mahindra will continue to provide engineering services. Navistar will also continue to support Mahindra through license agreements and extend necessary support for the purposes of business continuity.
Troy Clarke, President and COO Navistar said, “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. We thank Mahindra for their collaboration and appreciate their support in our decision to redirect our resources to other near-term opportunities for Navistar.”
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