Navistar closes truck and engine manufacturing plant in Texas to stem losses and stabilise the company
By Matt Wood | October 31, 2012
Navistar has closed its truck and engine manufacturing plant in Texas in the United States in an effort to stem losses and stabilise the company.
The move comes on the heels of a tumultuous period for the truck and bus manufacturing heavyweight, which has seen friction between major shareholders and senior management.
Earlier this month Carl Icahn, who holds a 14.9 percent stake in the company, negotiated a truce with senior Navistar management to appoint three new directors to the board.
The company expects to reduce its operating costs by as much as $35 million dollars annually with the closure of the Garland factory.
The closure will cost 900 jobs, while production will be moved to other Navistar plants around the US.
“Closing a facility is always difficult because of its impact on the many great people who’ve been part of our company,” Navistar President Troy Clarke says.
“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.”
