Navistar International Corporation announced February 20 that it was consolidating mid-range engine manufacturing, an important next step in its turnaround efforts.
Medium-duty engine production is being moved from Huntsville AL to Melrose Park IL. Navistar will continue to build its 13-liter engine at the plant in Huntsville. Once completed later this summer, these actions are expected to eliminate approximately 280 jobs at Huntsville and reduce Navistar’s operating costs by about $22 million annually.
“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,” said Jack Allen, Navistar chief operating officer. “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.
“Ending production at a facility is a difficult decision because of its impact on the many great people who have been part of our company. 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.”