Navistar to close foundry

In yet another round of cut-backs, Navistar International has announced it will close its engine foundry in Indiana by mid-2015

Embattled American truck manufacturer Navistar International has announced it will close its foundry operations in Indianapolis, Indiana, next year, with the closure expected to be completed by mid-2015.

A company press release issued today (December 16) says the blocks and heads produced for its proprietary engines at the plant will now be sourced from the brand's supplier base.

The closure is the latest in a series of measures taken in recent times to rein in costs and streamline company operations.

According to Navistar's President of Operations, Persio Lisboa, the closure will further sharpen Navistar's outlook going forwards.

"Over the last two years we've taken a number of steps to strengthen our business and position the company for a return to profitability and long-term success," he said.

"We've determined that leveraging our suppliers for these components will reduce our engine costs, improve our overall manufacturing capacity utilization, and free up additional resources to invest in our core North America truck and parts business."

The closure will see Navistar shed around 180 jobs and reduce its annual operating costs by approximately $13 million.

"Closing a facility is a difficult decision because of its impact on the many great people who've been part of our company," said Lisboa.

"We will treat people with dignity and respect throughout this process."

International trucks slipped off the Australian scene in 2010, when Iveco Australia ceased manufacturing them under licence at its Dandenong facility in Victoria. Those rights are still current, however, and extend to 2017, but presently the only Navistar products sold here in Australia comprise the offshoot Cat Trucks range, sold through local subsidiary Navistar Auspac.

Navistar to close foundry

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