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In March , Navistar announced the move to Lisle. Renovations were completed in the fall, but the company gradually moved from Warrenville to Lisle in summer In early December , the company laid off employees, mostly engineers and designers who were United Auto Workers members. The other 1, workers either retired or chose to remain in Indiana and find work elsewhere.
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The only Navistar employees remaining after December were people manning the company's test track on Oxford Street. In June , speculation mounted about a possible takeover of the struggling truck maker. As a result, Navistar adopted a poison pill defense. The investor who took the 15 percent stake or more would not have the right to buy additional shares. On September 9, , billionaire and key stock holder Carl Icahn sent an open letter to Navistar's board, blasting them for "abysmal business decisions" and "poor corporate governance.
The one thing this Board refused to spend money on was a back-up plan involving the industry standard technology Navistar now must rely on. In a September interview, Cummins CEO Tom Linebarger said, "all we did was act nice to them Navistar even when they didn't talk nicely about us," he smiled, recalling harsh comments that Navistar executives had made about SCR being used by all its competitors.
This was due to the failed engine strategy, rising warranty costs and declines in commercial and military sales.
The company let go employees and in September , announced plans to lay off more salaried employees. In addition, the company announced it would close its Garland, Texas manufacturing facility by mid, resulting in the loss of jobs. Jack Allen was named COO. 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 September , Navistar announced it would cut 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 , a third round of lay-offs in as many years occurred at the corporate headquarters as part of ongoing cost-cutting measures. As part of the turnaround plan, Navistar executives cut costs aggressively.
Navistar said it would keep two other diesel engine plants operating in Huntsville.
In September , Navistar reported its best quarter in years. General Motors Co. 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 and are manufactured at Navistar's facility in Springfield, Ohio. In September , Navistar and Volkswagen Truck and Bus now called Traton , the subsidiary of the Volkswagen Group that controls European heavy truck makers MAN and Scania , announced their intent to pursue a strategic technology collaboration and to establish a procurement joint venture.
On January 30, , Traton announced a proposal to purchase all outstanding shares in Navistar.
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On July 15, , 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 [43] Although with non-disclosure of the total investment amount from both the parties, Navistar has taken a minority stake in TuSimple.
In , 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. International has a long history in the school bus industry as a chassis provider, dating to when school buses first became motorized. In , 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 Today, IC Bus produces several models of full-sized school buses along with buses for commercial use.
In , 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. After , the production of gasoline engines ended, shifting to diesel-powered engines entirely.
During the s, Navistar began an expansion of its engine families.
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For , a 7. For , the DT inline-6 engine family was expanded to a second engine, as the DT was introduced competing directly against the Cummins 6BT. For the s, International began developing engines to comply with updated emissions standards for commercial vehicles. For emissions compliance, International launched the "MaxxForce" branding for its diesel engines. The VT engine family consisted of the 4. For its Class 8 trucks, the company introduced "large-bore" engines for the first time, introducing the After the model year, Ford ended its engine supply agreement with International, continuing the PowerStroke range under its own designs.
The MaxxForce 7 and DT engines were updated with twin turbochargers to improve emissions compliance. Following several years of difficulty reliably matching and emissions compliance, International chose to end diesel engine production following the model year, replacing the MaxxForce 7 and MaxxForceDT with the Cummins ISB6. In , International reentered the diesel engine production segment, launching the A26 The U. 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. 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. The eStar was an all-electric van.
Production began in March and first deliveries began two months later via its Workhorse Group division. By May the eStar had received U. Navistar discontinued the eStar van in March , as part of a corporate restructuring plan to focus on current profitability. In October , 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 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.
In , 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. The Navistar series has been fielded by the Canadian Forces for domestic operations. In , the U. In October , the company entered into a strategic agreement with Czech-based company Tatra to jointly develop, produce and market new military vehicles. In December , analysts were skeptical of the company's long-term potential. In the company's 10K filing, they projected military sales to continue to decline, citing U.
The company projected military sales to be slightly higher due to recent contract awards relating to the government's MRAP fleet. The company projected sales to be slightly higher than due to a recent new vehicle contract award, additional refurbishment and upgrades of government-owned MaxxPro vehicles and technical support services.
In , ND said they expect their U. In third-quarter , 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. Department of Justice, to discuss the matter. ND made submissions of documents responsive to the subpoena in June and August and has substantially completed its subpoena response.
Navistar had proposed its Saratoga vehicle for the competition. The company cited sequestration, the drawdown in Afghanistan and a challenging environment in the defense industry as factors. In January , the Pentagon announced they had notified allies of their intent to give away or scrap 13, 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.
Recipients have included various police departments and some universities. Navistar Defense built 9, of the 27, vehicles bought by the Pentagon. Estimated completion date is May 30, The DOD reported that Navistar was the only bidder.
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The work includes adding independent suspension systems and replacement of mandatory parts, with an estimated completion date of June 30, Work will be performed in West Point, MS. In September , Navistar Defense announced they would hire workers and re-open operations at their West Point, MS production plant. West Point had been idle since June due to sequestration, the drawdown in Afghanistan and declining orders. In September , amidst numerous divestitures, Navistar Inc. Work will be performed in New Carlisle, Ohio, with an estimated completion date of May 20, Bids were solicited via the internet with nineteen received.
Work will be performed in Lisle, Illinois, with an estimated completion date of July 16, Bids were solicited via the Internet with one received.