The Administrative Council of Economic Defence (CADE), Brazil’s antitrust regulatory authority, has approved the acquisition of diesel engines maker MWM Motores by International Engines South America, a subsidiary of Navistar International Corporation.
Go deeper with GlobalData
The deal was announced in April but only now, with CADE’s approval, concluded with the creation of MWM-International Indústria de Motores América do Sul.
The new company is now the biggest diesel engines maker in South America with three factories. Two are in Brazil and the other in Argentina. The factories make a range of engines from 2.5- to 9.3-litres in size for automotive, industrial and agricultural applications.
MWM and International were competitors as, for example, suppliers of diesel engines for Brazilian-made medium-sized pick-ups. Now, the new company supplies motors for all the locally-built models such as the Chevrolet S10 and Nissan Frontier. The Argentine-made Ford Ranger also has MWM-International engines.
This year, the company expects to make about 150,000 engines but plans to boost production to about 200,000 per year by 2009.
International Engines South America was created in 1999 with Navistar’s purchase of Maxion Motores.
Rogério Louro
