International Truck and Engine Signs 5-Year Contract with Vastera to Manage North American Trade Operations
DULLES, Va.--Jan. 23, 2002--Leading Truck Manufacturer Anticipates Significant Financial Returns
Through More Effective Utilization of NAFTA and Other Preferential
Trade Programs
Vastera, Inc. , the leading provider of solutions for Global Trade Management (GTM), today announced that International Truck and Engine Corporation ("International"), the operating company of Navistar International Corporation , a leading producer of mid-range diesel engines, medium trucks, school buses, heavy trucks and severe service vehicles, has signed a 5-year managed services agreement with Vastera to run its North American trade operations.
"We see a tremendous opportunity to improve our Customs compliance efficiency by leveraging Vastera's capabilities," said Tom Erickson, Director of Logistics and Aftermarket Purchasing at International. "A significant investment in technology and trade expertise is required for any company to effectively manage preferential trade programs, global trade compliance and international goods movement in general. Not doing these things well can significantly impact international business performance. With Vastera's solutions, we expect to enhance operational efficiencies that will ultimately result in faster cycle times and better service for our customers, while reducing our own expenses."
With annual sales of $6.7 billion, International has plants throughout North and South America, where it manufactures a wide range of vehicles and parts sold through its network of dealers with more than 1,000 outlets.
International imports components from all over the world for assembly into vehicles within the United States, as well as other countries. International's ability to take advantage of preferential trade agreements like NAFTA is key to minimizing its import duties, which according to a recent study by Penn State University can constitute as much as 75% of the total cost of importing.
Vastera will leverage its TradeSphere technology through its Automotive Trade Hub in Detroit, Michigan to help International fully realize the potential duty savings for which it is eligible, while complying with country-specific trade regulations.
The TradeSphere solution will quickly identify the specific preferential trade programs for which goods qualify, help classify products accurately, automatically generate and file the appropriate documentation with governmental agencies, track the country of origin for all parts, identify and report assists on U.S. goods manufactured abroad, and automatically perform the country-specific compliance checks associated with all shipments.
"Signing International represents another step in the evolution of our automotive platform for global trade managed services," said Arjun Rishi, CEO and Chairman of Vastera. "Over the course of the past fourteen months, we have deployed a scalable automotive trade platform by applying technology and trade expertise. This mature platform will enable us to rapidly deliver tremendous value to our clients, including International."
About Vastera
Vastera is the leading provider of solutions for Global Trade Management. Its solutions including software, trade management consulting and managed services, are designed to streamline global business. The foundation of these solutions is Global eContent, a comprehensive, rules-based application of country-specific trade and regulatory content, which is updated daily.
Vastera's solutions drive quick, tangible benefits for its clients by accelerating the flow of goods through the global supply chain, and reducing the associated operational costs. Vastera clients include: Ford, Visteon, Alcatel, Dell, Microsoft, New Zealand Dairy Board and Nortel Networks. For more information, please visit www.vastera.com.
About International Truck and Engine Corporation
International Truck and Engine Corporation is the operating company of Navistar International Corporation , which is headquartered in Warrenville, Ill., a suburb of Chicago, and had 2001 sales and revenues of $6.7 billion.
International Truck and Engine is a leading producer of mid-range diesel engines, medium trucks, school buses, heavy trucks, severe service vehicles, and a provider of parts and services sold under the International brand by the industry's broadest dealer and distribution organization.
The company also is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. Additional through a joint venture with Ford Motor Company, the Company will build medium commercial trucks, and currently sells and services truck and diesel engine parts. Financing for customer and dealers if provided through a wholly owned subsidiary of Navistar.
Additional information can be found on the company's Web site at www.InternationalDelivers.com.
This press release includes statements, which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements in this press release that are not strictly historical are "forward looking" statements, which are subject to the many risks and uncertainties that exist in Vastera's operations and business environment.
These risks and uncertainties may cause actual results to differ materially from the expected results and include, but are not limited to, Vastera's limited operating history, history of losses and anticipation of continued losses, potential volatility of quarterly operating results, the ability to successfully implement Vastera's expansion plans, risks related to the Internet, risks related to legal uncertainty and other risks which are set forth in more detail in Vastera's Registration Statement on Form S-1, as amended, as well as other reports and documents filed from time to time with the Securities and Exchange Commission.