Navistar Promotes Clarke to CEO

Navistar International Inc. has appointed Troy Clarke, its president and chief operating officer since August, to become chief executive on April 15.

Clarke, former president of General Motors Co.'s North America unit, joined the Lisle, Ill.-based maker of trucks and diesel engines in 2010 and was promoted to president of truck and engine operations last July.

Clarke replaces Lewis Campbell, who is stepping down after seven months as chairman and interim CEO. Navistar board member James Keyes, former chairman and CEO of Johnson Controls Inc., will become nonexecutive chairman.

Activist investor Carl Icahn, owner of 4.9% of Navistar and critic of Campbell's appointment, says he supports Clarke's promotion.

Campbell retired chairman and CEO of Textron Inc. and a 24-year GM veteran was hired when Navistar ousted Dan Ustian last August. Ustian's "clean" diesel emissions strategy resulted in an engine that failed to meet U.S. regulatory standards.

Under Campbell, Navistar abandoned its engine strategy and agreed to buy engines and components from rival Cummins Inc., which are due to go on sale late next month. The company also sold its stakes in non-core joint ventures and cut costs to save $175 million annually by this year.

Separately, Navistar reports it narrowed its net loss to $123 million in the November-January period from $153 million a year earlier. Revenue dropped 12% to $2.6 billion.

The company captured 11% of Class 8 heavy-duty truck sales in North America in the quarter, down from 24% in 2010. Clarke tells Bloomberg News that Navistar's market share could rebound to as much as 18% by this autumn.