GM Extends Engine Supply Agreement with Navistar Affiliate MWM International Motores

420,000 units of a new generation diesel engine to be produced
from 2011 to 2018
SAO PAULO, Brazil--(Business Wire)--
The board of directors of General Motors Brazil and MWM
International Motores, an affiliate of Navistar Inc., have signed a
strategic agreement to manufacture 420,000 units of a completely new
diesel engine to serve GM's new vehicle line to be launched by 2011.
The engines will be supplied for GM in Brazil and the vehicles will
also serve export markets.

The directors for both companies today signed the seven-year
engine supply contract at GM headquarters in Sao Caetano do Sul, Sao
Paulo, Brazil. Considering the current conditions of the global
vehicle market, both companies estimate that volumes can reach 60,000
units per year. This represents the largest contract between GM and a
supplier in Brazil.

"This partnership demonstrates the confidence of GM Brazil in its
long-standing supplier, MWM International, which has supplied GM with
diesel engines since 1964. To put it in perspective, during these 44
years of partnership, nearly 780,000 engines for GM trucks, pick-ups
and SUVs have been supplied," said Jaime Ardila, president of General
Motors in Brazil and Mercosul. Ardila said the partnership "is aligned
with our strategic objective to have all Chevrolet lines completely
renewed by 2012."

"We're proud to work with automotive leaders like GM," said Jack
Allen, president of Navistar Engine Group. "This agreement helps both
companies to expand business in global markets and furthers Navistar's
global diversification strategy."

Waldey Sanchez, president and CEO of MWM International Motores,
said that for the production of the new 2.8 liter, 4-cylinder diesel
engine to GM, the company will dedicate investments equivalent to US$
80 million in its plants in Canoas, Rio Grande du Sul, Brazil; Santo
Amaro, Sao Paulo, Brazil; and Jesus Maria, Argentina; and will
generate 400 new direct jobs. According to Sanchez, "The new agreement
with GM represents the biggest contract in MWM International's
history."

Jose Carlos Pinheiro Neto, vice-president of GM Brazil, said the
historical agreement between both companies "reinforces the resolve of
GM Brazil to invest permanently in its strategic partnerships, such as
the agreement with MWM International."

Adhemar Nicolini, general director of GM Powertrain Latin America,
Africa and Middle East (GM LAAM) emphasizes that this contract extends
GM's capacity to supply Chevrolet vehicle production for the Brazilian
market.

In addition to the already announced project to establish a new
engine plant in Joinville, Santa Catarina, "this new contract will
assure the availability of engines to maintain the strong expansion
that we intend to have in Brazil and the Mercosur region," said
Nicolini.

Johnny Saldanha, purchasing and supply chain vice president of GM
LAAM said the contract "is the highest value contract that GM has
signed with a supplier in the 84 years the company has been in
Brazil."

"The new engines will have the most modern design and technology
used by the global automotive industry," said Nicolini. MWM
International will be responsible for the new diesel engine machining
and assembly, as it does for the Sprint 4.07 TCE engine it supplies
for Chevrolet S10 pick-ups and Blazer SUVs in Brazil.

MWM International's Waldey Sanchez added that "the partnership
will expand our production scale and recognizes our quality in
manufacturing processes, logistics and technology excellence, as well
as our competitive cost structure."

General Motors Corp. (NYSE: GM), the world's largest automaker,
has been the annual global industry sales leader for 77 years. Founded
in 1908, GM today employs about 266,000 people around the world. With
global headquarters in Detroit, GM manufactures its cars and trucks in
35 countries. In 2007, nearly 9.37 million GM cars and trucks were
sold globally under the following brands: Buick, Cadillac, Chevrolet,
GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall
and Wuling. More information on GM can be found at www.gm.com.

Navistar(R) Engine Group is a leading manufacturer of diesel
engines for commercial and consumer vehicles for global on-highway and
off-road markets. The business unit of Navistar Inc., which is owned
by Navistar International Corporation (NYSE: NAV), operates
manufacturing plants in North and South America, and offers diesels in
the 37-354 kW (50-475 hp) range. Navistar affiliate MWM International
Motores exports to more than 30 countries in the Americas, Europe,
Asia, Africa and Oceania. The company offers a complete engine line
with modern technology - from 2.5 to 9.3 liters to achieve global
emissions standards. For more information, visit
www.mwm-international.com.br and www.NavistarEngines.com.

Navistar Engine Group
Bob Carso, +1 708 865-3484
or
Laughlin/Constable
Patrick McAuley, +1 312 422-5942
or
MWM International
Mariana Mendes, +55 11 3882-3736
or
Navistar
Heather Kos, +1 630 753-2406

Copyright Business Wire 2008