LaFrance, Navistar team up in global venture

American LaFrance LLC, the Summerville-based truck maker that recently emerged from bankruptcy, plans to follow the demand for commercial vehicles overseas.

In a joint venture announced Thursday, the company will team up with Illinois-based Navistar Inc. to broaden its global reach.

Known for its firetrucks, American LaFrance has seen demand slip for its line of so-called vocational vehicles, which include street sweepers, garbage haulers and construction vehicles. Spokesman Richard Ball blamed high gas prices and a lull in development, including residential building activity.

One of the primary goals of the new venture is to help the two companies tap into markets overseas, especially in the Middle East, where demand for the trucks is more robust.

"A lot of countries are growing faster than us, and this allows us to take advantage of that," Ball said.

He said Navistar was an ideal partner because of its strong international sales and distribution network. Few American LaFrance trucks, if any, end up across the ocean under the company's current business strategy.

The venture is expected to create jobs and boost truck production at the company's new Summerville manufacturing headquarters, but it's unclear how many extra workers will be needed and when.

"We anticipate that it will increase the number of people we'll need to build trucks in Summerville, but that number has yet to be determined," Ball said.

The anticipated work could make up for some production that was lost recently amid a company-wide reorganization. American LaFrance is transferring its firetruck production to its Pennsylvania and New York plants, leaving Summerville

workers to concentrate on commercial orders.

Trucks produced through the joint venture will be made in Summerville using Navistar engines.

Caterpillar Inc.'s decision to stop making diesel engines in the face of tougher U.S. emissions standards left American LaFrance with only one supplier, Cummins Inc. The addition of Navistar as a second supplier gives the company more options and flexibility, Ball said.

The new venture also could help the companies expand to make other types of commercial vehicles, such as airplane refueling trucks, he added.

The Navistar partnership comes on the heels of another change in leadership at American LaFrance.

Bill Hinz, who stepped aside as CEO during the bankruptcy reorganization but remained with the company, is back in the top job. Matthew Karmel, who led the business during the restructuring, has left to pursue other interests.

"Matthew was put in charge to get us out of bankruptcy, which he successfully did, and he has gone on to other ventures," Ball said.

Reach Katy Stech at 937-5549 or kstech@postandcourier.com.