31 May 2001

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® Class 8 trucks.

“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.”

Navistar and Cummins recently terminated their talks on a potential heavy-duty engine development and manufacturing joint venture.

Source: Navistar International Corporation