Dina says Solar Series deal with Western Star would be unaffected by sale

MEXICO CITY (June 26, 2000) — Consorcio G. Grupo Dina, S.A. de C.V. said it expects its agreement to build and export class-7 vehicles for Western Star Trucks would continue should Western Star be sold. Western Star acknowledged last week that it is exploring a merger opportunity with another truck manufacturer.

Last October, Dina signed a 10-year contract with Kelowna, B.C.-based Western Star to produce a class-7 vehicle for sale through Western Star dealers. The model, introduced last December as the Solar Series, carries the Western Star badge.

“There is no provision for a change in the contract if Western Star should merge with another company,” Dina management said in a statement. “Moreover, Dina has no knowledge of the details or possible timing of a Western Star merger transaction. In the event of such a merger, Dina’s management considers it possible that this could further enable Dina to develop its North American business, depending upon the market position and growth potential of Western Star after a merger.”

There is speculation that Freightliner LLC is pursuing Western Star to enhance its Sterling Truck Corp. subsidiary, which specializes in medium- and heavy-duty vehicles for vocational markets.