International Engine Group Announces Sourcing for MaxxForce(TM) Big Bore Engine Blocks



    
    MWM International's Santo Amaro plant to machine CG Iron blocks
    

    WARRENVILLE, Ill., June 27 /CNW/ -- International Truck and Engine
Corporation, a Navistar company (Other OTC:   NAVZ), today announced that its
Brazilian subsidiary MWM International Motores, and Brazil-based supplier
Tupy, will provide compacted-graphite iron (CG Iron) cylinder blocks for the
new MaxxForce(TM) 11 and MaxxForce(TM) 13 big bore diesel engines.
    Tupy will cast the advanced CG Iron cylinder blocks at its plant in Sao
Paulo, Brazil, and MWM International will machine the blocks at its Santo
Amaro plant, also in Sao Paulo.  The machined blocks will be shipped from
South America to International's new engine plant in Huntsville, Ala., where
the MaxxForce(TM) big bore engines will be assembled.
    "Our ability to source globally and utilize MWM International for the
machining of this new innovative block design demonstrates our commitment to
integration and growth as a global company," said Persio Lisboa, vice
president, purchasing and logistics, International Engine Group.  "This also
allows us the opportunity to leverage our assets to serve the North American
market, while creating a competitive advantage for our MaxxForce(TM) big bore
engines."
    Waldey Sanchez, president and CEO, MWM International, added:  "We knew
the big bore team was focused on finding the highest-quality machining source
that was cost-competitive globally.  Our Santo Amaro plant offers cost,
quality, and logistical advantages that helped us get selected over other
worldwide competitors.  We are very proud to have been chosen."
    In late 2006, Huntsville was selected as the site for the assembly of the
new engines.  To accommodate the work, a new state-of-the-art plant is being
built near International's current manufacturing facility in Huntsville.
Production in Huntsville will begin in spring 2008.  Initial engines will be
partially assembled in Germany and finished and trimmed in Huntsville.
    The MaxxForce(TM) 11 and MaxxForce(TM) 13, which will provide owners and
operators with outstanding fuel economy, excellent power characteristics, low
noise vibration and harshness, and high strength without added weight, will be
offered in International(R) ProStar(TM) line-haul tractors, TranStar(TM)
regional-haul tractors, and WorkStar(TM) severe service vehicles in the U.S.
and Canada beginning later this year.
    "The MaxxForce(TM) 11 and MaxxForce(TM) 13 will be the first heavy-duty
diesel engines in North America to leverage advances in manufacturing
technology to offer an engine block cast from CG Iron," said Jacob Thomas,
vice president, big bore business unit.  "The use of this material allows us
to provide a high-strength block without added weight -- a valuable attribute
for our truck customers."
    Created by a very precise procedure, which involves adding magnesium to
molten gray iron at a specific point in the casting process,
compacted-graphite iron offers significant advantages over traditional gray
iron.  CG Iron is 70 percent stronger and 40 percent stiffer, and provides
double the fatigue limit of gray iron.  In addition, CG Iron's unique
molecular structure resists fractures.

    International is a leading diesel-engine maker.  In North America, it has
nearly a 50 percent share of the diesel pickup engine market and 40 percent of
the market for medium-duty commercial trucks and buses.  In South America, it
accounts for nearly 40 percent of all diesel engines produced.
    For information on MaxxForce(TM) big bore engines and the entire line of
MaxxForce(TM) commercial diesel engines, visit http://www.maxxforce.com.  The
Web site for MWM International is http://www.nav-international.com.br.
    A wholly owned subsidiary of Navistar International Corporation (Other
OTC: NAVZ), International Truck and Engine Corporation is a leading producer
of medium trucks, heavy trucks, severe service vehicles, mid-range diesel
engines, parts and service. International and its affiliates sell their
products, parts and services through a network of nearly 1,000 dealer outlets
in the United States, Canada, Brazil and Mexico and from more than 60 dealers
in 90 countries throughout the world. Additional information is available at:
http://www.navistar.com.

    Photos of the new MaxxForce(TM) 11 and MaxxForce(TM) 13 diesel engines
are available at http://www.maxxforce.com/news-room.





For further information:

For further information: Joe Koenig of International Truck and Engine 
Corporation, +1-708-865-3448, Joe.Koenig@Nav-International.com; or Roy Wiley 
of Navistar International Corporation, +1-630-753-2627, 
Roy.Wiley@Nav-International.com Web Site: http://www.navistar.com            
     http://www.maxxforce.com                 
http://www.nav-international.com.br

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INTERNATIONAL TRUCK AND ENGINE CORPORATION

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MWM INTERNATIONAL MOTORES

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