Navistar to close Texas facility

Navistar today announced that it intends to close its Garland, Texas, truck manufacturing operation as part of its efforts to reduce costs and optimise its manufacturing footprint. Navistar intends to cease operations at the Garland facility by the first half of 2013.

“Closing a facility is always difficult because of its impact on the many great people who've been part of our company,” said Troy Clarke, Navistar President and Chief Operating Officer. “But the fact is that Navistar has too much manufacturing capacity in North America and we must take quick action to improve our business and position the company for long-term success.”

The Garland facility currently employs approximately 900 salaried, hourly and third party temporary workers. Truck volume now produced at Garland will transition to other North America operations that currently build similar models beginning in January 2013.

Once completed, the Garland closure is expected to reduce Navistar's operating costs by $25-$35 million annually.

Cat Trucks in Australia said the closure will not cause much disruption to truck supply in Australia. In an interview with Prime Mover's Tim Giles, they said the first batches of the new models will be made at Garland before production is phased out, in fact some are already on the boat to Australia. When production ceases at the Texas plant, Cat will have tested production at either the Navistar plant in Springfield Ohio or in Mexico.

New supply agreement with Cummins

Navistar has also announced that it will offer the Cummins ISX15 engine in its International ProStar+, PayStar and 9900 models. Navistar will begin its initial pilot builds of the International ProStar+ with the Cummins ISX15 in November with first customer deliveries in December.

The brand will also utilise the Cummins Emission Solutions SCR after-treatment system for the company's own heavy-duty big bore engines. The International ProStar+ with MaxxForce 13 and the Cummins Emission Solutions SCR-based after-treatment system will enter initial pilot production in March 2013 with regular production to begin in April 2013.

The remaining line-up of heavy-duty truck models will transition to SCR-based clean engine technology in a phased launch throughout 2013 based on volume and customer demand. During the transition, Navistar will continue to build and ship EPA-compliant trucks in all vehicle classes using appropriate combinations of earned emissions credits and/or non-conformance penalties (NCPs).

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