This was a smart decision, as litigation tends to be a drain on internal resources. While management has yet to quantify the positive impact in the near term, it is one less issue to address. CAT and Navistar agreed to settle all litigations between them. As part of the settlement, CAT will receive an up-front cash payment and a three-year promissory note from NAV. The settlement will result in an after-tax charge to CAT of ~$50 million due to a reduction in receivables from litigations.
Long-term supply agreements have also been established for CAT's on-highway truck engines, fuel injectors and remanufacturing services. As a part of the agreement, Caterpillar Remanufacturing will act as International's lead global remanufacturing service provider. Under this new relationship, the parties will examine and explore opportunities to enhance the overall value of International's remanufactured products and services.
Ford (NYSE:F), restructuring after a $1.44 billion first-half loss, is in talks to sell some of its luxury- auto brands, specifically Jaguar and Land Rove,r to an investment group led by former Chief Executive Officer Jacques Nasser.
A chink in the armor? Toyota (NYSE:TM) is considering delaying the introduction of some new models by as much as half a year amid a series of recalls and quality problems. "I have given an order to pay more attention on safety issues, but we as a company are not stalling,'' Toyota President Katsuaki Watanabe told reporters.
The world truly is flat. Nissan (OTCPK:NSANY) is considering building a factory in North America in 2008/09 or later, Japanese business daily Nihon Keizai reported, citing an interview with the co's co-chairman Itaru Koeda. If not the United States it will likely be Mexico.