Navistar RV Sold to Allied Specialty Vehicles image

Allied Specialty Vehicles has purchased Navistar International’s recreational vehicle business.

As Truckmaker Navistar is currently concentrating on its main business, selling the Navistar RV represents a big step in this direction, according to CEO Jack Allen. Beginning with August, Navistar has begun to add a new management team, part of its plan to end losses. In March, Troy Clarke was named CEO, replacing interim boss Lewis Campbell, after CEO Dan Ustian was ousted in 2012. Besides purchasing the Navistar NV, Allied Specialty Vehicles has also entered a leasing deal for a Navistar recreational vehicle plant in Elkhart, Indiana.

A recent report shows that heavy truck industry in the US continues to recover as sales surpassed 20,000 units since December. Trucking companies have to buy around 20,000 trucks per month to replace the old ones manufactured by the Navistar International and Paccar companies. Although the heavy truck industry has not fully recovered, investors are optimistic as home construction is increasing and carriers are the ones moving the automobiles and the construction equipment.

“There is a lot of optimism out there,” Kristine Kubacki, a St. Louis-based analyst at Avondale Partners LLC. “It’s really geared toward a back-half recovery.”

Source: Bloomberg