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Navistar to close foundry

Issued at 2015-02-20



Navistar International reported a largerthan-expected loss for 4Q14 of US$72M due mainly to restructuring in North and South America, and product warranty costs. As a result of rationalizing its costs and inefficiencies, Navistar is closing its Indianapolis engine foundry. The foundry closed in 2009 but restarted in 2011 to supply castings for Navistar’s 13 liter and 15 liter engines.

This final closure will result in the loss of about 100 jobs and will reportedly cost the company US$11M. It follows problems with a proprietary smog-reduction system that meant that the company could not meet new exhaust standards and increasing quality control problems that saw the company start buying engines from Cummins.

Profits forecasts were not met and the Indianapolis foundry became a casualty. All is not doom and gloom for Navistar however, as it recently announced a new fuel efficiency package for the International ProStar. The package offers superior aerodynamics, a drivetrain with advanced downspeeding, and the most efficient rear axles in the industry. Navistar remains viable and reported a 9% increase in sales during the quarter.


Source: SiC&More



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