Navistar to Cut 280 Jobs, Consolidate Engine Manufacturing
Navistar International Corporation (NYSE: NAV) has announced that it will cut 280 jobs at its Huntsville, Alabama facility and plans to reduce operating costs by about $22 million annually through the consolidation of its mid-range engine manufacturing.
As a result, the company will move mid-range engine production at its Huntsville, Ala., plant to Melrose Park, Ill.
Navistar will continue to build its 13-liter engine at its Huntsville, Ala., 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,” 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,” he added. “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.”
Category: General Update, Management
Subscribe
If you enjoyed this article, subscribe to receive more just like it.
