Released on January 27, 2009

Truck and engine maker Navistar International Corp., Warrenville, Ill., will close its Indianapolis Casting Corporation (ICC) metalcasting facility, as well as the engine plant in Indianapolis, on July 31, according to a company press release.

The company’s statement indicated the shut downs are a result of changes in its relationship with Ford Motor Co., the facilities’ primary customer. Ford and Navistar previously announced they will end their diesel engine supply agreement.

“This is a difficult decision because of the impact it has on our employees and the community where we live and work,” said Eric Tech, vice president and general manager, Navistar Engine Group. “But the significant change in Ford’s business plans has forced us to make this decision.”

Navistar will continue to produce diesel engines for Ford through 2009. The companies also will continue to collaborate on their Blue Diamond Truck and Parts joint ventures and their diesel engine supply agreement in South America.

“Over the past 30 years, Ford and Navistar dominated the diesel-powered, heavy-duty pickup truck market, providing value to both companies’ customers and shareholders,” Tech said.
 
According to the statement issued by Navistar, the company will continue several initiatives to ensure its future survival, including expansion into China and India and a broadening of product offerings. The company recently introduced the MaxxForce 11 and 13 engines and announced plans to produce a proprietary 15-liter engine. The company’s mid-range diesel engine business now includes military business and other international customers.