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Navistar Will Close Diesel Engine Plant in Consolidation Move
Navistar International Corp. says it will trim its diesel engine capacity by closing a factory in Huntsville, Ala., this summer and moving the facility's work to a plant in Melrose Park, Ill.
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Navistar International Corp. says it will trim its diesel engine capacity by closing a factory in Huntsville, Ala., this summer and moving the facility's work to a plant in Melrose Park, Ill.
The company said last summer it was studying plans to consolidation the two facilities.
The Alabama factory makes diesels for Navistar's medium-size commercial trucks. The company has been buying diesels from rival engine maker Cummins Inc. after a "clean" diesel system it developed failed to meet U.S. 2010 emission standards. The disaster saddled the company with fines and high warranty charges.
CEO Troy Clarke tells The Wall Street Journal that the plant closure is only to adjust capacity, insisting that Navistar does not intend to exit the diesel business.
The company once controlled more than 30% or the U.S. medium-duty truck market. But its share slumped to about 17% at the end of last year as wary buyers shunned the company's redesigned and fully compliant engines.
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