Navistar Negotiating New Long-Term Supply Agreement for 12- to 13-Liter Class 8 Diesel Engines

    WARRENVILLE, Ill., May 31 Navistar International
Corporation announced today that it is negotiating a long-term
supply agreement with AB Volvo of Sweden for the supply of 12- liter to
13-liter engines for its International(R) Class 8 trucks.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/19991207/CGTU007 )
    "In the face of industry consolidation and concerns regarding future
emissions standards and timing, we want to ensure that International customers
and dealers have access to a 12- to 13-liter Class 8 engine," the company
said.  "Thus, we have signed a letter of intent and are negotiating a long-
term agreement with Volvo to supply us with a 12- to 13-liter Class 8 engine.
We will continue to offer diesel engines from other suppliers."
    For competitive reasons, no other details are being released at this time,
the company said.
    Navistar International Corporation is the parent company of
International Truck and Engine Corporation, a leading producer of mid-range
diesel engines, medium trucks, school buses, heavy trucks, severe service
vehicles, and parts and service sold under the International(R) brand.  The
company also is a private label designer and manufacturer of diesel engines
for the pickup truck, van and SUV markets.  With world headquarters in
Warrenville, a suburb of Chicago, Navistar had 2000 sales and revenues of
$8.5 billion.  Additional information can be found on the company's web site
at http://www.internationaldelivers.com .

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