To sell or not to sell Navistar

[deSanford]

RVB: So, realizing that your evaluation is currently underway and looking in your crystal ball, what, realistically, does the future hold for Navistar RV? Is there a chance Navistar could sell or close its RV business?
Clarke: We are committed to the long-term viability of our RV business. With that said, there are really three potential outcomes for our RV business — close the business, sell the business or continue to invest in and grow the business.
Well, I can tell you, we have no plans to close the business and have not studied a closure scenario. It is not our plan to do so. In the last three years, we’ve made significant investments and have taken actions that have delivered improvements in the performance of the business. Right now, we are simply evaluating all of our businesses to ensure they are delivering the appropriate “Return on Invested Capital” and have the right strategic fits.
Selling the business is a realistic potential outcome and would support our efforts to maintain the future viability of the business. If a sale were to occur, Navistar would be looking to sell to a buyer who can create more value in the RV business than we can.
If someone else can maximize its value, that is ultimately best for all stakeholders. That’s another option and one that we are closely evaluating. Now, this would not be a distressed sale. We don’t have that need. As I said, we have the cash necessary to manage our emission transition plan. And, we have already made investments in the business and have taken actions that are driving improvements in the business.
RVB: Any other closing comments, Troy, or anything else you’d like our readers to know?
Clarke: Let me end with where I began. When evaluating our businesses, and in this case, Navistar RV, we are using a disciplined process to assess both return-on-invested capital and strategic fit and the close/sell/grow options. We want to make these decisions in a timely manner to address the uncertainties for our employees, customers and dealers, but we won’t sacrifice performing the due diligence that’s required. My commitment is that when we have made a decision and are ready to announce that decision, these key stakeholders will hear about it first from us. deSanford ps Navistar RV