Navistar consolidates engine manufacturing

Navistar, the name behind International Trucks, is shuffling its engine manufacturing in an effort to rein in costs

Navistar has announced it will shift the manufacturing of its mid-range truck engines from its production facility in Huntsville, Alabama, to another facility in Melrose Park, Illinois, in an effort to enhance efficiency and reduce its costs.

Production of Navistar’s 13-litre engine will remain at the Huntsville plant.

According to Jack Allen, Navistar’s CEO, the move is a key element in putting Navistar back in the black.

“As we have stated previously, we have too much excess engine manufacturing capacity in North America and we must take action to reduce our costs and improve the business,” he said.

“The consolidation will further lower the company’s breakeven point, strengthen our competitiveness in the marketplace and help position Navistar for a return to profitability.”

The shift sees around 280 jobs cut at the Huntsville plant, equating with a saving of around $22 million annually.

“Ending production at a facility is a difficult decision because of its impact on the many great people who’ve been part of our company,” said Allen.

“We understand that these decisions have an impact on our employees and the community and we will treat our people with dignity and respect throughout this process.”

Navistar consolidates engine manufacturing

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