Western Star Merger Wouldn't Hurt Dina Deal
June 26, 2000
The 10-year deal between Western Star and Consorcio G. Grupo Dina would likely continue even if the Canadian-based truck builder merges with another company, says Dina.
Following press reports that Western Star is in negotiations with an unidentified third party, Dina issued assurances that its contract to build Class 7 trucks for Western Star was not in jeopardy. The company said the contract has no provisions for a change if Western Star should merge with another company. In fact, it said, a merger that enhanced Western Star's growth potential could be beneficial to Dina, since it would enable it to further develop its North American business.
The original contract called for up to 9,000 trucks in the first three years, but Western Star recently scaled that back. According to Dina, there were complications integrating the units into Western Star's existing product line. The trucks are sold in the U.S. and Canada.