History
1902–1985: International Harvester
The merger of McCormick Harvesting Machine Company and the Deering Harvester Company in 1902 resulted in the formation of the International Harvester Company (IH) of1985–1991: Transition from agricultural roots
International Harvester fell on hard times during the poor agricultural economy in the early to mid-1980s and the effects of a long strike with the UAW over proposed work rule changes. IH's new CEO, Donald Lennox, directed the management organization to begin exiting many of its IH's historical business sectors in an effort to survive. Some of the sales of profitable business endeavors were executed to raise cash for short-term survival, while other divisions were sold due to a lack of immediate profitability. During this period of questionable economic survival, in an effort to raise needed cash and to reduce losses, the management team led by Lennox at IH shed many of its operating divisions: Construction Equipment Division to1990s–early 2000s: Rediversification
In 1991, the final remnant of International in the automotive segment was sold off, as the Scout and Light Truck parts business was sold to Scout/Light Line Distributors, Inc. During the 1980s and 1990s, the popularity of diesel engines had made Navistar a leading manufacturer of bus chassis, particularly school buses. The company purchased one-third of American Transportation Corporation ( AmTran), an Arkansas-based manufacturer in 1991, and the remaining two-thirds in April 1995. By becoming both a body and chassis manufacturer at the same time, Navistar gained significant market share in the industry. During the 1994 model year, the T444E engine replaced the IDI diesel in Ford vehicles; still supplied by Navistar, the 7.3L V8 turbodiesel adopted the2000s
After nearly a century of business in2010s–present
Move to Lisle, Illinois
In September 2010, despite uncertainty over EGR and a sluggish economy, Navistar leadership revived an effort to relocate the company headquarters from Warrenville, IL, to nearby Lisle, IL. The new headquarters was expected to retain or create 3,000 permanent jobs and about 400 construction jobs. Navistar President Dan Ustian said roughly 500 engineers would be hired immediately. Navistar aimed to invest $110 million in the 1.2 million-square-foot Lisle campus, which would include product development. The state gave Navistar incentives of nearly $65 million, including tax credits. In March 2011, Navistar announced the move to Lisle. Renovations were completed in the fall, but the company gradually moved from Warrenville to Lisle in summer 2011. "You can't build a campus like this anywhere for anywhere near the price we paid for this, and even though you might get more incentives, when you look at the whole picture, you really can't beat it," said Don Sharp, Navistar vice president. In 2011, Navistar began phasing out its Truck Development and Technology Center (TDTC) in Fort Wayne, Indiana. In early December 2011, the company laid off 130 employees, mostly engineers and designers who were United Auto Workers members. In total, 300 out of 1,400 Fort Wayne employees eventually accepted offers to relocate to Illinois. The other 1,100 workers either retired or chose to remain in Indiana and find work elsewhere. The cost to move employees and consolidate operations was estimated to be $75 million. The only Navistar employees remaining after December 2012 were 20-25 people manning the company's test track on Oxford Street. In late July 2015, the TDTC closed and the remaining workers were let go.Tension mounts
In June 2012, speculation mounted about a possible takeover of the struggling truck maker. This came as hedge fund MHR Fund Management LLC disclosed a 13.6% stake in the company, slightly higher than billionaire activist investor Carl Icahn's 11.9% stake. As a result, Navistar adopted a poison pill defense. If the plan were triggered by an outside investor taking a stake of 15 percent or more in the company, then Navistar would issue its shareholders rights that would let them buy new common stock in the company at a discount of 50 percent: For each share held, the investor could buy $280 worth of new shares for $140. The investor who took the 15 percent stake or more would not have the right to buy additional shares. In August 2012, Navistar announced it would useLayoffs and consolidation
August 2012 featured a Voluntary Separation Program (VSP) as well as involuntary layoffs. This was due to the failed engine strategy, rising warranty costs and declines in commercial and military sales. The company let go 500 employees and in September 2012, announced plans to lay off 200 more salaried employees. In addition, the company announced it would close its Garland, Texas manufacturing facility by mid-2013, resulting in the loss of 900 jobs. In March 2013, Navistar announced that interim CEO Lewis Campbell would step down and COO Troy Clarke would be named CEO and chairman of the board. Jack Allen was named COO. In June 2013, CFO A.J. Cederoth stepped down and James M. Moran, Navistar senior vice president, and treasurer, would act as interim CFO until a successor could be found. In late June 2013, former General Motors executive Walter Borst was named Executive VP and CFO. In September 2013, Navistar announced it would cut 500 more jobs amid a larger than expected third-quarter loss. Navistar reported a slower than expected return to profitability due to large market share losses, declining sales, and weak market conditions. In May 2014, a third round of lay-offs in as many years occurred at the corporate headquarters as part of ongoing cost-cutting measures. On July 31, 2015, Navistar ceased operations and laid off the remaining 15 employees at the Truck Development and Technology Center (TDTC) in Fort Wayne, Indiana. In November 2015 and December 2015, several hundred Navistar employees voluntarily left the Corporate HQ office in Lisle, IL, as part of another Voluntary Separation Package (VSP).Cost-cutting and divestitures
As part of the turnaround plan, Navistar executives cut costs aggressively. They cut SG&A costs by 16% in 2013 and cut product development spending by 24%. Interim CEO Lewis Campbell's priorities included a focus on quality, reducing the company's cost structure and paring back its product line. Navistar also sold several businesses that it deemed were not providing enough of a Return On Invested Capital (ROIC). Among them were their Monaco Coach Corporation Recreational Vehicle (RV) business as well as Workhorse Chassis. They also exited their joint venture with Mahindra and sold off their E-Z Pack unit, which made bodies for garbage trucks, as well as its Continental Mixer unit, which made concrete mixers, for prices the company characterized as "not material." In January 2014, ''Forbes'' reported several key challenges facing Navistar, which include declining military sales, a pension plan underfunded by $2.7 billion, two self-disclosed weaknesses in accounting practices and a new collective bargaining agreement for the company's 6,000 full and part-time workers who are represented by labor unions. In February 2014, Navistar announced it would move some engine production operations from Huntsville, Alabama, to Melrose Park, Illinois by summer 2014. The move eliminated 280 jobs in Alabama and saved an estimated $22 million. Navistar said it would keep two other diesel engine plants operating in Huntsville. In September 2014, Navistar reported its best quarter in years. It announced a third-quarter net loss of $2 million, or $0.02 per diluted share, compared to a third-quarter 2013 net loss of $247 million, or $3.06 per diluted share. It was also in September that CEO Troy Clarke announced that the company's biggest divestitures were complete, and that the focus would now be on regaining lost market share. On November 6, 2014, leadership changes continued at Navistar, with Executive VP and COO Jack Allen retiring immediately. Rather than hire a new COO, CEO Troy Clarke split the COO duties among three other executives.GM and Navistar reach commercial vehicle agreement
General Motors Co. and Navistar have reached a long-term agreement to develop and assemble future medium-duty, conventional cab Class 4/5 commercial vehicles, allowing Navistar to strengthen its product lineup and GM to expand its Chevrolet commercial truck portfolio. The future trucks will be jointly developed using Navistar's expertise in rolling chassis configurations and manufacturing capabilities, and GM's commercial components and engines. The vehicles entered production in late 2018 and are manufactured at Navistar's facility in Springfield, Ohio.Strategic partnership and takeover by Traton SE
In September 2016, Navistar and Volkswagen Truck and Bus (now calledNavistar partnered TuSimple to develop robot truck
On July 15, 2020, Navistar established a developmental production partnership with TuSimple, an autonomous trucking technology company, to manufacture Level-4 autonomous semi-trucks. The production is said to start in 2024 Although with non-disclosure of the total investment amount from both the parties, Navistar has taken a minority stake in TuSimple.Corporate operations
International Trucks (1986–present)
In 1986, after the transition from International Harvester to Navistar, the truck product line (essentially all that was left) dropped the "Harvester" portion of the brand name. The International brand encompasses a variety of medium-duty, over-the-road, and severe-service trucks. ;Medium Duty * International CV Series (also produced as Chevrolet Silverado C6500 HD) * International MV Series ;Heavy Duty * International LoneStar * International LT Series * International RH Series ;Severe Duty * International HX Series * International HV SeriesIC Bus (2002–present)
International has a long history in the school bus industry as a chassis provider, dating to when school buses first became motorized. In 1991, Navistar entered the school bus industry as a body manufacturer when it began its acquisition of AmTran, an Arkansas-based company founded as Ward Body Works in 1933. Today, IC Bus produces several models of full-sized school buses along with buses for commercial use. ;School/activity buses * CE-Series conventional ( International 3300 chassis) * RE-Series rear-engine transit-style ( International 3000 chassis) ;Commercial buses * CE-Series conventional ( International 3300 chassis) * RE-Series rear-engine transit-style ( International 3000 chassis) * TC-Series chassis ( International 3300 chassis)MWM International Motores (2005–present)
In 2005, Navistar purchased MWM International Motores, a Brazilian engine manufacturer formerly associated with Deutz AG.Engines (1986–present)
In 1986, Navistar was formed from the engine division of the former International Harvester (alongside the truck division). In a continuation from its predecessor, International produced both gasoline and diesel-fueled engines for its medium-duty trucks and some heavy-duty trucks, offering second-party engines as an option. Class 8 trucks offered second-party diesel engines (from Caterpillar, Cummins, and Detroit Diesel). From International Harvester, International inherited production of the SV-series gasoline V8, IDI diesel V8, DV-series diesel V8, and DT466 inline-6. After 1986, the production of gasoline engines ended, shifting to diesel-powered engines entirely. During the 1980s, Navistar began an expansion of its engine families. For 1986, a 7.3L version of the IDI was introduced; the engine supplanted the long-running DV-series V8 by the end of 1988; the same year, it became an option in Ford trucks. For 1987, the DT inline-6 engine family was expanded to a second engine, as the DT360 was introduced (competing directly against the Cummins 6BT). During 1994 production, the IDI V8 was replaced by the direct-injection T444E V8, sharing little more than its displacement with its predecessor; the T444E became the first Ford PowerStroke engine. While the DT360 was withdrawn (largely replaced by the T444E), the DT466 (now the DT466E) was joined by the larger DT530E (competing primarily against the Cummins C8.3). For the 2000s, International began developing engines to comply with updated emissions standards for commercial vehicles. During 2003, the T444E was discontinued and replaced the VT engine family, introduced by the VT365 V8. For 2004, the DT engines received modernized fuel injection and a redesigned turbocharger; the DT530 was replaced by the DT570 (sized between the Caterpillar C9 and the Cummins ISL). In place of using Selective Catalytic Reduction (SCR) to treat engine emissions, International adoptedPlug-in electric vehicles
Plug-in hybrid electric bus
The U.S. Department of the Energy announced in 2009 the selection of Navistar Corporation for a cost-shared award of up to million to develop, test, and deploy plug-in hybrid electric vehicle (PHEV) school buses. The project aims to deploy 60 vehicles for a three-year period in school bus fleets across the nation. The vehicles will be capable of running in either electric-only or hybrid modes that can be recharged from standard electrical outlets. Because electricity will be their primary fuel, they will consume less petroleum than standard vehicles. To develop the PHEV school bus, Navistar will examine a range of hybrid architectures and evaluate advanced energy storage devices, with the goal of developing a vehicle with a range. Travel beyond the range will be facilitated by a clean diesel engine capable of running on renewable fuels. The DOE funding will cover up to half of the project's cost and will be provided over three years, subject to annual appropriations.eStar electric van
The eStar was an all-electric van. Production began in March 2010 and first deliveries began two months later via its Workhorse Group division. The technology used in eStar was licensed to Navistar in 2009 in a joint venture withNavistar Defense LLC (2003–present)
In October 2003, Navistar CEO Dan Ustian announced the company would be forming a defense business unit in order to sell military vehicles. Navistar Defense would be led by Archie Massicotte, a 26-year veteran of the company. Ustian stated "This is a natural area of growth for International. We already have all the platforms that the U.S. military and other NATO countries could leverage for products and services." In 2007, Navistar's International Truck and Engine Corporation became the first company to enter hybrid commercial truck production, with the International DuraStar Hybrid diesel-electric truck. Navistar Defense LLC is the prime supplier of MRAP armored vehicles to the US military. The Navistar 7000 series has been fielded by theSubpoena from U.S. DOD Inspector General
In third-quarter 2016, Navistar Defense said it received a subpoena from the United States Department of Defense Inspector General asking for documents related to the sale of some independent suspension systems to the government. Navistar Defense said it would comply. The subpoena is related to the independent suspension systems sold for military vehicles between Jan. 1, 2009 and Dec. 31, 2010. On June 3, 2016, ND met with government representatives, including representatives from DOD IG and the U.S. Department of Justice, to discuss the matter. ND made submissions of documents responsive to the subpoena in June and August 2016 and has substantially completed its subpoena response.Contract awards, losses and other events
On August 22, 2012, Navistar Defense lost their bid for the Engineering, Manufacturing & Development (EMD) contract worth $187 million for the Army and Marine Corps' Joint Light Tactical Vehicle (JLTV) program. Navistar had proposed its Saratoga vehicle for the competition. On Friday, August 28, 2012, Navistar filed a protest with the Government Accountability Office (GAO) but pulled their protest on Tuesday, September 4, 2012.2013
On June 20, 2013, Navistar Defense idled production at their West Point, MS production plant. 80 workers were notified that July 5, 2013, would be their last day. West Point was best known for manufacturing MRAP vehicles. The company cited sequestration, the drawdown in Afghanistan and a challenging environment in the defense industry as factors. On August 22, 2013, Navistar Defense lost their bid for the Ground Mobility Vehicle (GMV) 1.1 contract, potentially valued at $562 million. Navistar had proposed its Special Operations Tactical Vehicle (SOTV) for the competition. On Tuesday September 1, 2013, Navistar Defense and AM General filed a protest. On December 19, 2013, the Government Accountability Office (GAO) denied Navistar and AM General's protests.2014
In January 2014, the Pentagon announced they had notified allies of their intent to give away or scrap 13,000 used MRAPs. This was due to the war in Afghanistan winding down, the military wanting a lighter vehicle and high cost to ship them from the Middle East back to the U.S. Recipients have included various police departments and some universities. Navistar Defense built 9,000 of the 27,000 vehicles bought by the Pentagon. Giving away the MRAPs was seen as a blow to Navistar Defense's parts sales. In December 2014, Navistar Defense lost their bid for the Engineering, Manufacturing Development (EMD) contract for the Armored Multi-Purpose Vehicle (AMPV). BAE was awarded the $382 million contract on December 23, 2014. Navistar Defense lost their bid for Canada's Department of National Defence (DND) MSVS (Medium Support Vehicle System) Project - SMP (Standard Military Pattern) vehicle contracts. They proposed their ATX8 vehicle as part of an agreement with Czech-based company Tatra. The contract was for acquisition and in-service support (ISS) of a fleet of up to 1,500 SMP vehicles, up to 150 Armour Protection Systems (APS) kits, and 300 Load Handling System (LHS) trailers. Competitors include Oshkosh (MTVR), BAE Systems (FMTV), Daimler AG (Zetros), Renault Trucks (Kerax 8x8) and Rheinmetall/ MAN (HX77 8x8). A contract award decision is expected in June 2015. On July 16, 2015, Canada awarded the Acquisition and In-Service Support contracts to Mack Defense, LLC (Renault Trucks). On July 25, 2014, the DOD awarded a $27.6 million modification to an existing contract to acquire mine-resistant, ambush-protected hardware kits to upgrade MaxxPro Dash and long-wheelbase ambulances to their final configuration. Estimated completion date is May 30, 2015. On August 27, 2014, the DOD awarded a $38 million contract to Navistar Defense to restore MRAP Maxx Pro Dash vehicles to "like-new" standards. The DOD reported that Navistar was the only bidder. The work includes adding independent suspension systems and replacement of mandatory parts, with an estimated completion date of June 30, 2016. Work will be performed in West Point, MS. In September 2014, Navistar Defense announced they would hire 200 workers and re-open operations at their West Point, MS production plant. West Point had been idle since June 2013 due to sequestration, the drawdown in Afghanistan and declining orders. In September 2014, amidst numerous divestitures, Navistar Inc. CEO Troy Clark gave Navistar Defense a vote of confidence, noting that the military business unit would be retained. In a September 2014 interview with Reuters, he said "it's not a billion-dollar growth opportunity, but it's not something that's bleeding off the future fortunes of our company." On October 14, 2014, Navistar Defense was awarded a $9.2 million firm-fixed-price foreign military sale (FMS) contract to Jordan for one hundred 4-ton 4x4 cargo trucks and twenty days of operator and maintenance training. Work will be performed in New Carlisle, Ohio, with an estimated completion date of May 20, 2015. Bids were solicited via the internet with nineteen received.2015
On February 2, 2015, Navistar Defense was awarded a $15,381,152 firm-fixed-price contract with options for eight MRAP MaxxPro Hardware Kits to support MaxxPro vehicle standardization and reset. Work will be performed in Lisle, Illinois, with an estimated completion date of July 16, 2016. Bids were solicited via the Internet with one received. Fiscal 2015 other procurement (Army) funds in the amount of $15,381,152 are being obligated at the time of the award. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-15-C-0070). On March 18, 2015, Navistar Defense was awarded a $83,424,223 cost-plus-fixed-fee multi-year contract for system technical support and system sustainment technical support for MRAP MaxxPro vehicles. Funding and work location will be determined with each order with an estimated completion date of March 31, 2019. One bid was solicited with one received. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-15-D-0037). On April 13, 2015, Navistar Defense was awarded a $17,522,057 firm-fixed-price contract with options to procure seven Mine Resistant Ambush Protection MaxxPro Dash hardware kits for MaxxPro vehicle standardization and reset. Work will be performed in Lisle, Illinois, with an estimated completion date of Dec. 31, 2015. One bid was solicited with one received. Fiscal 2014 and 2015 other funds in the amount of $17,522,057 are being obligated at the time of the award. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-15-C-0092). On April 30, 2015, Navistar Defense was awarded a $31,199,783 modification (P00004) to contract W56HZV-14-C-0102 for reset and upgrade of the MRAP (mine-resistant ambush protected) family of vehicles to Code-A standards. Work will be performed in West Point, Mississippi, with an estimated completion date of July 31, 2016. Fiscal 2013 and 2015 other procurement (Army) and operations and maintenance (Army) funds in the amount of $17,990,419 were obligated at the time of the award. Army Contracting Command, Warren, Michigan, is the contracting activity. In April 2015, Navistar Defense President Bob Walsh resigned. On May 19, Kevin Thomas was promoted to president. On August 31, 2015, Navistar Defense was awarded a $368,932,767 firm-fixed-price foreign military sales contract (Afghanistan) for 2,293 medium tactical vehicles. Work will be performed in West Point, Mississippi; Ooltewah, Tennessee; Marion, Wisconsin; Springfield, Ohio, and Mercer, Pennsylvania, with an estimated completion date of Nov. 30, 2019. One bid was solicited with one received. Fiscal 2014 other procurement funds in the amount of $368,932,767 were obligated at the time of the award. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-15-C-0207).2016
On May 19, 2016, Navistar Defense was awarded an $11,682,550 firm-fixed-price, foreign military sales contract (Afghanistan) for 50 medium tactical vehicle aircraft refuelers. The estimated completion date is Oct. 31, 2016. One bid was solicited with one received. Work will be performed in Springfield, Ohio; and Kansas City, Kansas. Fiscal 2015 other procurement funds in the amount of $11,682,550 were obligated at the time of the award. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-16-C-0128). On May 24, 2016, Navistar Defense was awarded a $29,791,289 modification (P00014) to contract W912QR-16-D-0025 to reset and upgrade an additional 250 Mine Resistant Ambush Protected Vehicles (MRAPs), with an option for an additional 200 vehicles. Work will be performed in West Point, Mississippi, with an estimated completion date of May 31, 2017. Fiscal 2016 other procurement (Army); and operations and maintenance (Army) funds in the amount of $29,791,289 were obligated at the time of the award. Army Contracting Command Warren, Michigan, is the contracting activity.2018
On December 3, 2018, Cerberus Capital Management announced a definitive agreement with Navistar International Corporation under which certain affiliates of Cerberus will acquire a 70% interest in Navistar's defense business, Navistar Defense.Joint ventures
Current
General Motors
Navistar entered into an agreement to purchase General Motors' medium duty truck unit in 2007, but because of changing market conditions the purchase ultimately did not occur, and production of theTatra
Tatra and Navistar Defence introduced atFormer
Ford Motor Company
From the 1980s to the 2010s, Navistar had a close relationship with=Simon Duplex diesel
= As a result of the gas crises of the 1970s, the implementation of Corporate Average Fuel Economy (CAFE), was applied to light trucks alongside automobiles. In response, large-block gasoline V8 engines (such as the Ford 460) were withdrawn from production from pickup trucks and full-size vans. For the 1983 model year, Ford entered into a supply agreement with International Harvester to use the newly introduced IDI diesel V8 for and 1-ton F-Series pickups and E-Series vans. While roughly matching the output of the discontinued 400 cubic-inch V8 (the engine that it replaced alongside a reintroduced 460), the 6.9L diesel offered fuel economy closer to the standard 4.9L inline-6. While originally developed for the S1700 medium-duty truck, the engine supply agreement brought a diesel engine to market faster (and at far lower cost) than developing an engine from the ground up. In 1988, as International phased out the 6.9L engine, Ford received the 7.3L IDI diesel. During 1994 production, the IDI was replaced by the all-new T444E; to emphasize the introduction of direct injection fuel delivery, Ford began to brand International-sourced engines under the "PowerStroke" branding. As with the IDI, the T444E/PowerStroke was used in F-Series/E-Series trucks and vans. During 2003 production, the Ford Super Duty line and the E-Series adopted the VT365, replacing the T444E. For 2008, the MaxxForce 7 was introduced for the Super Duty pickups as a PowerStroke engine; in place of a variable-geometry turbocharger (used by International trucks), Ford versions of the engine were fitted with compound turbochargers. As the 6.4L engine would not properly fit in the vehicle, the E-Series continued use of the 6.0L diesel. After the 2010 model year, Ford ended the use of International-supplied diesel engines. From 2011 onward, the Super Duty was fitted with diesel engines developed by Ford; the E-Series shifted production exclusively to gasoline-based engines. Today, Ford continues the use of the PowerStroke branding, using it for multiple diesel engines produced by the company.=Blue Diamond Truck
= In September 2001, Navistar announced aAnhui Jianghuai Navistar
On 16 September 2010, Anhui Jianghuai Automobile Co., Ltd. (JAC) announced joint ventures with NC2 Global and Navistar International Corporation that will develop, build, and market heavy duty trucks and diesel engines in China. In May 2018, it was announced thatMahindra Navistar
Navistar formed a joint venture with Mahindra & Mahindra to build heavy trucks in India under the "Mahindra International" brand, which has since been renamed Mahindra Navistar. These trucks were displayed at Auto Expo 2010 in Delhi, India. The joint venture ceased as Navistar exited the joint venture in 2013.DINA/DIMEX Navistar
DINA (Diesel Nacional, S.A. de C.V, in English: National Diesel) or DIMEX (Diesel Mexicano, S.A. de C.V, in English: Mexican Diesel) for International Version is a Mexican bus and truck manufacturer based in Ciudad Sahagún, Hidalgo, Mexico. It was created by the federal government of Mexico in 1951 as Diesel Nacional, S.A.. and is currently owned by Grupo Empresarial G and its subsidiaries (since 1989). The company has gone through several stages of production of freight and bus models throughout its history, thanks to technological and commercial agreements and partnerships with various companies such as Fiat, Renault, Marcopolo S.A., Flxible, Cummins, Perkins, Chrysler, Caterpillar, Scania, MCI, Škoda, Spicer, Eaton and Dana. Today its primary production is buses for urban domestic and foreign use. They have developed their truck technology with a subsidiary of BMW. Currently, nearly 20% of the national vehicle fleet operate in Mexico, along with other Latin American countries. In 2001, to avoid bankruptcy, a group of administrative staff of Grupo Empresarial G, owners of the company remnants, carried out the financial restructuring of DINA Camiones. This process consisted of the sale of the plants that the group owned. In 2002, the government of the state of Hidalgo bought the facilities of the DINA Camiones plant. In 2005, a group of Argentine businessmen bought the Argentine DINA plant. Subsequently, problems arising due to the cancellation of the contract with Western Star Trucks, was settled by legal means. Freightliner paid a large compensation to the Mexican company. In compliance with the agreement, the amount was not disclosed. In 2004, the process of designing new passenger units began, based on HTQ technology, as well as on national and international standards. Starting in 2007, the first five prototypes of the chassis were concluded. The design and construction of a new plant began, along with the necessary equipment and tools. This was in the same industrial zone of Ciudad Sahagún, state of Hidalgo, Mexico. In July 2007, a prototype departed the new DINA plant. Its purpose was to conduct road tests, prior to production and marketing. In May 2008, the restart of DINA Camiones was announced, with the production and sales of four new bus models, all of them the urban type: DINA Linner, Runner, Picker and Outsider. At the time of restarting operations that year, the investment was US$100 million. The plant had a capacity of 23 units per day, 450 direct and 750 indirect jobs, and five concessionaires in different Mexican states to sell their units in Mexico.Controversies
In December 2011, the nonpartisan organizationAccounting issues
In January 2006, the company declared it would not file its form 10-K annual report with the U.S. Securities and Exchange Commission on time. The delay was caused by the disagreement with its auditors, Deloitte & Touche, over complex accounting issues. In April, Navistar fired Deloitte, its independent auditor for 98 years, and hired KPMG to help restate earnings back to 2002 to fix accounting errors. On December 15, 2006, Navistar executives announced a further delay in its restatement and 2006 results. The announcement prompted theFailed engine strategy
In 2001, then CEO Dan Ustian faced numerousNon-conformance penalties
The EPA recognized Navistar's imminent non-compliance and created a system of Non-Conformance Penalties (NCPs) that included a $1,919 fine for every non-compliant engine that Navistar sold. To bridge the gap, Navistar began using EPA credits it had previously earned for being compliant in lieu of paying fines. In August 2012, Navistar stated they would run out of EPA credits soon. Only days earlier the EPA announced increased new penalties of $3,744 per engine. In March 2009, Navistar sued the EPA, claiming that the agency's guidance documents for SCR implementation were invalid because they were adopted without a public process and with input only from the SCR engine makers. Navistar and the EPA settled the lawsuit a year later. Further masking the EGR problem were high military sales. In the company's 2010 10K report, Navistar cited orders for MRAPs as offsetting flat commercial sales due to the recession. In January 2012, the EPA adopted an interim final rule that allowed Navistar to continue selling the engines subject to NCPs. Several Navistar competitors sued, and in June 2012 the same appeals court ruled that EPA's interim rule was invalid because it did not give the public notice and an opportunity for comment. In the meantime, Navistar's EGR decision had led to significant reliability issues and quality problems (which were ultimately traceable to the fundamental physical reality that recirculation of exhaust gas introduces intrinsically abrasive soot and inherently corrosive acid gases back into the engine). Truck drivers began losing trust and confidence as Navistar vehicles were breaking down frequently. Consequently, they abandoned Navistar trucks in favor of competitor's trucks.Legal issues (MaxxForce engines)
In December 2014, the United States Judicial Panel on Multidistrict Litigation ordered that 13 of 14 civil lawsuits brought against Navistar for MaxxForce engines would be consolidated into one case. The consolidated lawsuits say Navistar's use of Advanced Exhaust Gas Recirculation emission control system, or EGR, was defective and resulted in repeated engine failures and frequent repairs and downtime. On December 16, 2014, Navistar reported a larger than expected fourth quarter net loss of $72 million. While sales rose 9 percent to $3 billion, the company cited restructuring and warranty costs as the main reasons for the loss. A day earlier, the company announced it would be closing its engine foundry in Indianapolis, resulting in the loss of 100 jobs and costing $11 million. The company estimated annual savings of $13 million in operating costs. In March 2015, Navistar reported a first-quarter 2015 net loss of $42 million, or $0.52 per diluted share, compared to a first-quarter 2014 net loss of $248 million, or $3.05 per diluted share. Revenues in the quarter were $2.4 billion, up to $213 million or 10 percent, versus the first quarter of 2014. The higher revenues in the quarter were driven by a 17 percent year-over-year increase in charge outs for Class 6-8 trucks and buses in the United States and Canada. This included a 42 percent increase in school buses; a 25 percent increase in Class 6/7 medium trucks; a 7 percent increase in Class 8 heavy trucks; and a 5 percent increase in Class 8 severe service trucks. Higher sales in the company's export truck operations also contributed to the increase, partially offset by a decrease in used truck sales. The company finished the first quarter with a 27 percent year-over-year increase in order backlog for Class 6-8 trucks. On June 4, 2015, Navistar reported a second-quarter net loss of $64 million, or 78 cents a share, compared with a year-earlier loss of $297 million, or $3.65 a share. Revenue fell to $2.69 billion from $2.75 billion. Analysts had expected a loss of 18 cents a share and revenue of $2.82 billion. On June 9, 2015, Navistar named Jeff Sass as the new Senior VP of North American Truck Sales. Sass previously worked 20 years for rivalFacilities
Corporate facilities
Manufacturing facilities
Former facilities
Images
See also
* International Harvester * List of International (brand) trucks * List of International Harvester vehicles *References
External links
*