Mahindra To Purchase Navistar's Stake In India Joint Ventures

        Mahindra To Purchase Navistar's Stake In India Joint Ventures

PR Newswire

LISLE, Ill. and MUMBAI, India, Dec. 18, 2012

LISLE, Ill.and MUMBAI, India, Dec. 18, 2012 /PRNewswire/ --Mahindra &
Mahindra Ltd. (M&M) and Navistar International Corporation (NYSE: NAV)
announced today that Mahindra intends to purchase Navistar Group's stake in
Mahindra Navistar Automotives Ltd (MNAL) and Mahindra Navistar Engines Pvt Ltd
(MNEPL). Following the purchase, both MNAL and MNEPL would become wholly owned
subsidiaries of Mahindra. Mahindra would take complete ownership of operations
and continue to sell MNEPL and MNAL products. The sale requires regulatory
approval in India, is subject to the conclusion of definitive agreements, and
is expected to be completed in early 2013.


The terms of the proposed transaction call for Mahindra to pay approximately
Rs.175 crores, or $33 million, for Navistar Group's stake in both ventures.
The agreement allows Navistar to continue sourcing components from India while
Mahindra would continue to provide engineering services to Navistar. Navistar
group would continue to support M&M through a license agreement and extend
necessary support to MNAL and MNEPL for the purposes of business continuity.

As part of its "Drive to Deliver" turnaround plan launched in August, Navistar
has been conducting an analysis of all of its businesses and programs to
determine their return on invested capital (ROIC) and identify areas for
improvement. Based on this business environment, Navistar has determined that
it needs to redirect its efforts to other initiatives that more quickly
contribute to the company's goal to improve its ROIC.

"Since it was established in 2005, Mahindra Navistar Automotives Ltd. has
created a niche for itself in the Indian CV industry," said Dr. Pawan Goenka,
president, Automotive and Farm Equipment Sectors, Mahindra & Mahindra Ltd.
"MNAL has set up a world class dealer and service network for trucks, which
coupled with synergies with Mahindra's dealer network gives us a significant
opportunity to grow our presence in the truck market. In addition, the product
has been well accepted as is evident from our high-ranking in the TNS customer
satisfaction survey. M&M is committed to the success of the truck business. We
acknowledge the contribution made by Navistar to this venture thus far and
appreciate their support for business continuity after they exit the

"While the Indian market has not expanded as we had originally expected and
industry challenges there continue in the near term, we still see promise in
India going forward. But given Navistar's 2013 priorities, our capital and
focus needs to be allocated to other business opportunities in the near term,"
said Troy Clarke, president and chief operating officer, Navistar. "Mahindra
has extensive experience and knowledge of the Indian automotive sector and
they are best situated to devote the time and resources required to capitalize
on future opportunities in India."

Navistar and Mahindra entered into the MNAL joint venture in late 2005 to
manufacture trucks and buses in India, source components and provide
engineering services for the design and development of Navistar vehicle
products. The MNEPL joint venture was formed in 2007 and began producing
engines in 2010.

About Navistar

Navistar International Corporation (NYSE: NAV) is a holding company whose
subsidiaries and affiliates produce International® brand commercial and
military trucks, MaxxForce® brand diesel engines, IC Bus™ brand school and
commercial buses, and Navistar RV brands of recreational vehicles. The company
also provides truck and diesel engine service parts. Another affiliate offers
financing services. Additional information is available at

About The Mahindra Group

The Mahindra Group focuses on enabling people to rise. Mahindra operates in
the key industries that drive economic growth, enjoying a leadership position
in tractors, utility vehicles, information technology and vacation ownership.
Mahindra also has a strong presence in the agribusiness, aerospace,
components, consulting services, defence, energy, financial services,
industrial equipment, logistics, real estate, retail, steel and two wheelers.

A USD 15.9 billion multinational group based in Mumbai, India, Mahindra
employs more than 144,000 people in over 100 countries. In 2011, Mahindra
featured on the Forbes Global 2000 list, a listing of the biggest and most
powerful listed companies in the world. Dun & Bradstreet also ranked Mahindra
at No. 1 in the automobile sector in its list of India's Top 500 Companies. In
2010, Mahindra featured in the Credit Suisse Great Brands of Tomorrow. In
2011, Mahindra acquired a majority stake in Korea's SsangYong Motor Company.

SOURCE Navistar International Corporation

Contact: Navistar Media Contact: Elissa Koc, +1-331-332-2669, or Mahindra
Media Contact Roma Balwani, +91 22 24905176, or Navistar Investor Contact:
Heather Kos, 331-332-2406
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