GE, Navistar International Corp. and Navistar Financial Corp. (NFC) jointly announced an expanded financing relationship under which GE Capital will become Navistar’s preferred provider of retail financing solutions to support sales of Navistar trucks and school buses in the United States. The agreement takes effect immediately under the Navistar Capital name, with full implementation in 90 days.
“We are very pleased to be expanding our long relationship with GE Capital,” says A.J. Cederoth, Navistar executive vice president and chief financial officer. “This new alliance will enable Navistar to better support our dealer network and invest more capital in what we do best, which is to manufacture and sell top-quality products.”
GE Capital has provided dealer financing to Navistar in Canada since 1986. “GE Capital is a leader in transportation financing and has been a great financing partner to our dealers in Canada for over 20 years,” says David Johanneson, Navistar Financial president and chief executive officer. “We look forward to working closely with GE Capital to provide a broader and more competitive set of financing options to customers in the U.S.”
About 60 NFC employees who support NFC’s retail business will join GE Capital to manage this program. “GE Capital’s financial strength, combined with the NFC team’s experience and integration with distribution, will result in a significantly stronger ability to help finance the sale of Navistar products,” says Bill McMenamin, NFC vice president, CFO and treasurer.
JP Morgan Securities Inc. served as advisor to Navistar on this transaction. As GE Capital has been working to become a more focused financial services company, we also continue to invest and grow our core businesses,” says Dan Henson, CEO of GE Capital, Americas. “Our expanded financing relationship with Navistar, a leader in the transportation industry, enables us to apply our nearly 40 years’ experience in transportation finance and in supporting leading OEMs and dealer networks across the U.S. economy to help drive Navistar’s growth.”