Report: Navistar May Sell MWM International
Navistar Inc. is considering the sale of its South American engine business MWM International, according to a Bloomberg report.
The report indicated that Navistar is working with an investment bank to review the MWM operation, which includes manufacturing facilities in Santo Amaro (São Paulo state) and Canoas (Rio Grande do Sul state), Brazil, and Jesús Maria, Argentina. Acquired by Navistar in 2005, MWM marked its 60th anniversary as an engine manufacturer in 2013 and has produced more than four million engines during that time.
One of the largest suppliers of engines in the Mercosur region, MWM International exports engines to other regions, including China, Turkey and South Korea.
Since mid-2012, Navistar has worked to streamline its operations and focus on its core North American truck business in an effort to return to profitability. In that time, it has made a number of moves toward that end, including the closure of its Garland, Texas, truck plant, the sale of its recreational vehicle business, the divestiture of its holdings in two joint ventures with India’s Mahindra. In addition, it has significantly increased its use of Cummins diesel engines in its medium- and heavy-duty vehicles, which has raised questions about its future as an engine manufacturer.
A Navistar spokesman told Bloomberg that the company is not commenting on whether the MWM business will be sold.