INTERNATIONAL TRUCK AND ENGINE CORPORATION SIGNS DEFINITIVE AGREEMENT WITH MONACO COACH FOR CHASSIS MANUFACTURING JOINT VENTURE
WARRENVILLE, IL, January 25, 2007
– International Truck and Engine Corporation today announced it has signed a definitive agreement to form a joint venture with Monaco Coach Corporation (NYSE: MNC)
, one of the nation's leading manufacturers of recreational vehicles, to manufacture rear engine diesel chassis.
International is the principal operating company of Navistar International Corporation (NYSE:NAV)
Under the joint venture agreement, International will own 51 percent and Monaco Coach will own 49 percent of the newly formed company called Custom Chassis Products LLC
. Initial plans call for the joint venture to manufacture more than 5,000 diesel chassis in the first year.
"The opportunity to team up our best-in-class chassis with the resources of International Truck and Engine will allow Monaco Coach to fine tune what we are already building and grow our business with additional one-of-a kind chassis designs,"¯ said Kay Toolson, chairman and CEO of Monaco Coach Corporation.
Tom Cellitti, vice president and general manager of International's medium vehicle center, said, "This exciting development further strengthens International's commitment and capabilities within the RV market. The acquisition of Workhorse in late 2005, coupled with this announcement, positions us as a true full line supplier of chassis to the RV market."¯
The transaction, which will be subject to customary closing conditions, is expected to close in February. The joint venture will begin production in February, and Monaco Coach Corporation will lease its 210,000 square foot Roadmaster chassis plant, located in Elkhart, Ind. to the joint venture.
As the principal operating subsidiary of Navistar, International produces International® brand commercial trucks, MaxxForce brand diesel engines and IC brand school buses, Workhorse brand chassis for motor homes and step vans, and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company is also a provider of truck and diesel engine parts and service. A wholly owned subsidiary offers financing services. Additional information is available at: International Delivers.com.
About Monaco Coach Corporation
Dedicated to quality and service, Monaco Coach Corporation is one of the nation's leading manufacturers of motorized and towable recreational vehicles. Headquartered in Coburg, Oregon, with substantial manufacturing facilities in Indiana, Monaco Coach employs approximately 6,000 people. The Company offers entry-level priced towable RVs up to custom made luxury recreational vehicle models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie, R-Vision and Dodge brand names. Monaco Coach maintains RV service centers in Harrisburg, Ore., Elkhart, Ind., and Wildwood, Fla.