Navistar International Corp. and Mahindra & Mahindra Ltd. said Tuesday that Mahindra has completed its purchase of Navistar’s stake in an Indian joint venture.
Mahindra, an Indian truck maker, said in December it would purchase Navistar’s stake in the venture for about $33 million. The two companies entered into the joint venture in 2005.
Navistar said in December it would exit the venture as part of its “Drive to Deliver” turnaround strategy, and would focus on strengthening its North American core businesses and pursue near-term initiatives to improve the company’s performance.
The agreement allows Navistar to continue sourcing components from India while Mahindra would continue to provide engineering services to Navistar, the two companies said in a joint statement.
“Mahindra has been a valuable partner these last seven years and they are well equipped to move [their truck] businesses forward as the Indian market continues to develop,” Navistar Chief Operating Officer Troy Clarke said in the statement.
“Mahindra remains committed to growing its presence in the Indian commercial vehicle industry,” with its truck and engine businesses “continuing to play a critical role in helping us achieve this goal,” said Pawan Goenka, president of Mahindra’s automotive and farm equipment sectors.