Management

Navistar expects $22M annual savings in engine production move

Thomas McMahon
Posted on February 21, 2014

Navistar International Corp. on Thursday unveiled plans to consolidate its mid-range engine manufacturing, a move that officials described as “an important next step” in the company’s turnaround efforts.

Navistar, which is the parent company of IC Bus, will move mid-range engine production at its Huntsville, Ala., plant to Melrose Park, Ill. The Melrose Park plant currently builds Maxxforce inline six-cylinder engines.

Company spokesperson Elissa Maurer told SBF that Navistar’s mid-range portfolio includes the MaxxForce 7, MaxxForce DT, MaxxForce 9 and MaxxForce 10.

The MaxxForce 7 and MaxxForce DT engines are used in IC Bus school buses, along with the newer option of the Cummins ISB6.7.

Maurer said that after this summer, only big-bore engine production will remain in Huntsville. The company will continue to build its 13-liter engine at its Huntsville big-bore engine plant.

Navistar Chief Operating Officer Jack Allen said in a statement that the company has “too much excess engine manufacturing capacity in North America, and we must take action to reduce our costs and improve the business. 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."

The move is expected to eliminate about 280 jobs at Huntsville and reduce Navistar's operating costs by about $22 million annually.

"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."

Related Topics: Alabama, engines, IC Bus, Illinois

Thomas McMahon Executive Editor
Comments ( 0 )
More Stories
Article

Great Ideas Abound on the Bus

Great ideas come in many forms. What all of these innovations have in common is that they promote the role of school buses in student achievement.

News

School Bus Driver Teaches Students to Fish

Gary Kelmer of New Jersey invites students he transports to a local pond on spring break to teach them how to fish and get them to spend time outdoors. He has offered the activity for over 20 years.

Video

VIDEO: School Bus Danger Zone Awareness

This dramatization from Georgia, based on a true story, teaches students about safely boarding and exiting the school bus — including what to do if they drop something.

Two bills that are intended to address school bus safety in the wake of a fatal crash in November have advanced in the Tennessee House of Representatives. One would raise the minimum age for new school bus drivers, and the other would require "a restraint system" on school buses.
News

Tennessee School Bus Bills Advance

A bill that would raise the minimum age for new school bus drivers in the state passes unanimously in the House. Another bill that would require restraints on school buses passes a committee vote.

Planning has begun for the 17th National Congress on School Transportation (NCST) in 2020. Murrell Martin and Bill Loshbough are shown here leading a discussion at NCST 2015.
News

NCST 2020 Planning Begins

Planning for the 17th National Congress on School Transportation is now in the works, with committee members being re-established and selected through this summer.

Product

Video File Securement Solution

The SecuraMax automated video management software solution is designed to help users securely upload, manage, protect, and share video files.

Be the First to Know

Get the latest news and most popular articles from SBF delivered straight to your inbox. Stay on top of the school bus industry and don't miss a thing!