Power Solutions (PSIX), Navistar (NAV) Enter Extended Engine Supply Agreement

October 19, 2016 9:43 AM EDT

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Power Solutions International, Inc. (PSI) (Nasdaq: PSIX) announced that Navistar (NYSE: NAV) has extended its engine supply agreement with PSI to run through 2021.

The agreement, originally set to run through 2018, covers PSI’s supply of 8.8-liter propane and gasoline engines for Navistar’s subsidiary, IC Bus.

“We’re very excited that Navistar has chosen to extend our supply agreement well into the future,” said Gary Winemaster, PSI’s Chairman and Chief Executive Officer. “The decision not only demonstrates the strength of our relationship, but also the satisfaction and confidence Navistar has in our ability to deliver high-performance products that help them achieve their strategic goals. We look forward to a long and successful partnership as bus fleets and local school districts continue to embrace the growing market trend towards alternatives to diesel engines. These engines provide a cleaner environment for our children and significantly less noise of any engine available in the industry today. This is what the market has been looking for and we are working hard to continue to deliver industry leading products.”

Navistar began partnering with PSI in 2014 in order to expand its well-known IC Bus™ product line with alternative-fuel offerings to meet growing market demand. In November of that year, IC Bus launched its PSI-powered, CE Series Type C propane school bus at the NAPT (National Association for Pupil Transportation) Summit in Kansas City, MO. Since production started IC Bus has over 450 in service units powered by PSI’s propane engine. Significant deliveries include 149 buses to Waterbury Public Schools in Waterbury, CT, 100 buses to Indianapolis Public Schools in Indianapolis and 63 have been operating in Tuscaloosa City Schools since early 2016.

“We are mindful of the many operational needs of our school bus customers and we take pride in offering them powertrain options that meet those needs while delivering on our promise to build reliable, safe and efficient buses,” said Persio Lisboa, president, Operations, Navistar. “We are excited to continue our partnership with PSI in providing high-performance, alternative fuel engines in our buses.”

In July 2016, IC Bus showcased a PSI-powered, CE Series Type C gasoline school bus at the School Transportation News (STN) Expo in Reno, NV. The gasoline powered CE will also be on display at the upcoming National Association of Pupil Transportation show in Kansas City, MO November 8th, 2016. Production of the CE gasoline bus will be announced at a later date.

Both school bus models are powered by customized, purpose-built PSI 8.8-liter engines, designed to deliver diesel-like performance and drivability with tangible savings on fuel and overall maintenance. According to Mr. Winemaster, the engines are the most powerful for their fuel types in the school bus market today.

For more information on PSI and its products, visit http://www.psiengines.com.



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