Navistar & Ford settle … Sauer-Danfoss buys Comatrol … international to close plant … Cummins & Briggs in Chinese ventures - Business Notes - Diesel industry news briefs

Diesel Progress North American Edition, May, 2003

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Navistar International Corp. said it has reached a settlement with Ford Motor Co. over Ford's decision to cancel a V-6 diesel engine contract. Financial terms were not disclosed. Navistar, in a regulatory filing, said the agreement includes "appropriate recovery of excess costs for a plant Navistar built in Huntsville, Ala., to make the engines. The company had said in late October that Ford wanted to delay or cancel the V-6 engine. Navistar said it would remain Ford's exclusive supplier of V-8 diesel engines through 2012 for use in Ford pick-up trucks, vans and sport utility vehicles.

Sauer-Danfoss Inc. announced that it has purchased a reported 85 percent interest in Comatrol, S.p.A., an Italian manufacturer of hydraulic cartridge valves and hydraulic integrated circuit manifolds. In February 2002, Sauer-Danfoss acquired a 45 percent in Comatrol as part of a strategic alliance. Terms of this latest agreement were not disclosed.

International Truck and Engine Corp. said it will close its Chatham, Ontario, assembly plant on July 18. Production of International 9000i Series Class 8 trucks will be transitioned from Chatham to the company's Escobedo, Mexico, assembly plant.

Cummins Inc. has set up a $100.6. million diesel engine manufacturing joint venture with Chinese automaker Dongfeng Automobile Co Ltd. Dong-feng would reportedly own a 50 percent stake in the venture, which would have the capacity to produce 130,000 diesel engines a year, with Cummins and its domestic subsidiary holding the other half.

Briggs & Stratton Corp. has taken a larger stake in its joint venture in China and is also increasing the amount of engine components it buys in China. Briggs has increased its stake in PUYI-Briggs & Stratton Engine Corp. to 90 percent from 52 percent. Briggs will also establish a purchasing office in China for components.

Tecumseh Products Co., Tecumseh, Mich., has announced its intent to close its engine manufacturing facility in Douglas, Ga. The company said the closure is to reduce excess capacity by shifting production to lower-cost manufacturing facilities overseas. Equipment from the Douglas plant will be transferred to other U.S. operations and to the company's new facility in Curitiba, Brazil.

Oshkosh Truck Corp. said it has won a contract worth $250 million to supply tankers to the British Armed Forces. Oshkosh said the contract for 348 wheeled tankers includes a mix of tactical aircraft refuellers and close support tankers. The equipment portion of the contract is valued at about $230 million. Oshkosh plans to build the rankers at its plant in Llantrisant, South Wales, with the first vehicles scheduled to be in service in spring 2005.

Freightilner Trucks said its Santiago Tianguistenco, Mexico, manufacturing plant will increase its production rates with the rollout the new Business Class M2 line of medium-duty and vocational trucks to the Mexico market this summer. Production begins in June. Initially, the Santiago plant will produce the Business Class M2 106 model with regular cab. Later on, the plant will build Business Class M2 100 and 112 models as well as crew cabs and extended cabs. The Santiago plant also produces Freightliner Columbia and FLD heavy-duty trucks, Freightliner and Sterling Cargo Class 7 & 8 trucks, and bus chassis.

Parker Hannifin Corp. and MTS Systems Corp. announced that Parker has acquired MTS Automation for an undisclosed amount. The MTS Automation Division, New Ulm, Minn., has annual revenues of approximately $25 million and produces a line of brushless motors, analog and digital amplifiers, digital and servo controllers and linear motors.

Sun Hydraulics Corp. said it is forming a marketing and technical support company in France. The new company will be located in Bordeaux and joins existing Sun operations in Coventry, England and Erkelenz, Germany.

Cat dealer Finning International Inc. has closed the previously announced acquisition of Matreq Ferreyros S.A., the Caterpillar dealerships in Bolivia. Financial details weren't disclosed.

Yanmar Diesel America has appointed Tuban Industrial Products Company (TiPCO), Mountain View, Calif., as its industrial engine distributor for California and Hawaii. Yaninar also assigned additional territory to its distributor Engines, Inc., Weiner, Ark. In addition to Arkansas and Mississippi, Yanmar has assigned most of Texas and Oklahoma to Engines Inc.