Navistar to Consolidate Engine Operations; Move Will Save $22 Mln. Annually, Cut 280 Jobs
Navistar International Corp. announced Feb. 20 that it will consolidate its midrange engine manufacturing operations, which it said will eliminate 280 jobs and save the company about $22 million annually.
Under the consolidation, which it called “an important next step in its turnaround efforts,” Navistar will move its midrange engine production from Huntsville, Ala., to Melrose Park, Ill.
The company said the moves will be complete this summer and that it will continue to build its 13-liter engine at its Huntsville big-bore engine plant.
“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,” Navistar Chief Operating Officer Jack Allen 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,” he said in a statement.
“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,” Allen said. “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.”
