Navistar Shutting Down Indianapolis Operation
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIllinois-based Navistar International Corp. (NYSE: NAV) has announced plans to close its foundry operations in Indianapolis. The move is expected to affect 180 workers and be complete next summer. Since the collapse of the auto industry at the end of the last decade, Navistar has been reducing its presence in Indianapolis and Fort Wayne. The company laid off hundreds of workers in Fort Wayne in 2011 and 2012 at its Truck Development Technology Center.
Navistar also announced major facility shutdowns in 2009 and 2010 in Indianapolis, cutting a total of more than 1,700 jobs.
Sources: Inside INdiana Business, The Indiana Department of Workforce Development and Navistar International Corp.
December 15, 2014
News Release
LISLE, Ill. – Navistar International Corporation (NYSE: NAV) announced today that it will close its foundry operations in Indianapolis, Indiana, where it currently produces engine blocks and heads for its proprietary engines. Going forward, the company will source these components from the supply base. This transition will occur during the first half of next year, and the company expects to complete the foundry closure in the summer of 2015.
“Over the last two years, we've taken a number of steps to strengthen our business and position the company for a return to profitability and long-term success,” said Persio Lisboa, Navistar's president of operations. “We've determined that leveraging our suppliers for these components will reduce our engine costs, improve our overall manufacturing capacity utilization, and free up additional resources to invest in our core North America truck and parts business.”
Once completed, closing the Indianapolis foundry is expected to eliminate approximately 180 jobs and reduce Navistar's operating costs by about $13 million annually. The company took an $11 million charge in Q4 2014 that includes employee separation benefits, pension and other postretirement contractual termination benefits, inventory reserves and other related costs. In addition, the company anticipates up to $40 million in additional charges for accelerated depreciation related to the closure of the Indianapolis foundry and related impacts during the first half of 2015.
“Closing a facility is a difficult decision because of its impact on the many great people who've been part of our company,” Lisboa added. “We will treat people with dignity and respect throughout this process.”
About Navistar
Navistar International Corporation (NYSE: NAV) is a holding company whose subsidiaries and affiliates produce International brand commercial and military trucks, MaxxForce® brand diesel engines, and IC Bus brand school and commercial buses. An affiliate also provides truck and diesel engine service parts. Another affiliate offers financing services. Additional information is available at www.Navistar.com.
Source: Navistar International Corp.