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Siemens and Navistar Select South Carolina as Home For New Joint Venture

16 June 1999

Siemens and Navistar Select South Carolina as Home For New Automotive Joint Venture

    COLUMBIA, S.C., June 16 -- Siemens Diesel Systems Technology,
LLC, a joint venture company formed by Siemens Automotive Corporation, Auburn
Hills, Mich., and a wholly owned subsidiary of Navistar International Corp.
, Chicago, Ill., announced today the selection of a manufacturing
site located in Richland County, S.C.
    Siemens Diesel Systems Technology, LLC represents a combined capital
investment of approximately $100 million.  Fifty people are expected to be
hired during the start-up phase.  The operation will create up to 500 new jobs
by Oct. 1, 2004.
    Today, in a live satellite news conference transmitted from Siemens
Automotive Systems Group world headquarters in Regensburg, Germany, South
Carolina Governor Jim Hodges announced the site selection to local and state
media gathered at the University of South Carolina Engineering School.
    "We are thrilled to have the opportunity to work with the latest
technology has to offer and two of the most innovative companies in the
world," said Governor Jim Hodges.  "I also am delighted to have made this
announcement in Regensburg during my first international mission."
    In order to bring new diesel fuel injection technology to the North
American market, Siemens Diesel Systems Technology, LLC, will temporarily
locate operations in an existing 70,000-square-foot facility located near the
Interstate 77 corridor, in Columbia, S.C., until a new facility can be erected
in the neighboring region at a later date.  Move-in and set-up of the JV
operation will begin as soon as July 1.
    Siemens Diesel Systems Technology, LLC was formed by Siemens Automotive
Corporation and Navistar to develop and manufacture next generation diesel
fuel injectors for diesel engines, designed and manufactured by Navistar.
Diesel engines equipped with the new technology will be used in
International(R) brand trucks and school buses and by OEMs in other
applications.
    The joint venture, of which Siemens Automotive Corporation owns 51
percent, will develop and manufacture low-pressure, common-rail digital valve
fuel injectors for use in diesel fuel systems designed and manufactured by
Navistar's Engine and Foundry Division.  The diesel injector incorporates
proprietary digital valve technology under license from Sturman Engine
Systems, L.L.C.
    This fuel injection system, part of Navistar's Green Diesel
Technology(SM), is scheduled to be ready for commercial use by the 2002 model
year and is designed to increase engine performance and respond to demands for
clean air solutions.  Production levels are expected to reach four million
injectors per year by 2005, which will establish Siemens Diesel Systems
Technology, LLC as a leader in the North American market for diesel injectors.
    "With more than 11,000 existing jobs within a 500 mile radius of Columbia,
Siemens is no newcomer to this region," stated George Perry, president and
CEO, Siemens Automotive Corporation.  "South Carolina, with more than 500
Siemens employees, provides an excellent quality of life that will be
important in attracting and maintaining an exceptional workforce to produce
these high tech products."
    Other Siemens commitments to South Carolina include a Siemens Energy &
Automation facility in Roebuck, along with Emitec, a joint venture plant
between GKN and Siemens, in Greenville, S.C.  Siemens employs 66,000 people
throughout the U.S.
    Siemens Automotive Corporation is the U.S. arm of Siemens Automotive
Systems Group, a tier-one supplier of automotive electrical/electronic
components and systems with sales of $3.3 billion in 1997/98.  Siemens
Automotive Systems Group invests up to 12 percent of revenues into research
and development, annually, and is an operating unit of Siemens AG, one of the
largest electrical/electronics companies in the world.  Generating sales of
more than $66 billion in 1997/98, Siemens AG employs approximately 416,000
people in 190 countries around the globe.
    Navistar International Corp., with world headquarters in Chicago, Ill., is
a leading North American producer of heavy and medium trucks and school buses.
1998 annual revenues were $7.9 billion.  The company also is a worldwide
leader in the manufacture of mid-range diesel engines which are produced in a
range of 160 to 300 horsepower for International(R) brand, and a private label
designer and manufacturer of diesel engines for the full-size pickup truck,
van and selected industrial and off-highway markets.