Navistar to Consolidate Engine Operations; Move Will Save $22 Mln. Annually, Cut 280 Jobs

[kscarbel2]

Transport Topics / February 20, 2014

Navistar International Corp. announced Feb. 20 that it will consolidate its midrange engine manufacturing operations, which it said will eliminate 280 jobs and save the company about $22 million annually.

Under the consolidation, which it called “an important next step in its turnaround efforts,” Navistar will move its midrange engine production from Huntsville, Ala., to Melrose Park, Ill.

The company said the moves will be complete this summer and that it will continue to build its 13-liter engine at its Huntsville big-bore engine plant.*

“As we have stated previously, we have too much excess engine-manufacturing capacity in North America, and we must take action to reduce our costs and improve the business,” Navistar Chief Operating Officer Jack Allen said.

“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,” he said in a statement.

“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.”

*Navistar produces MAN 10.5-liter D20 and 12.4-liter D26 engines under license as the Maxxforce 11 and 13.

[Red Horse]

Are we to assume this is the first consolidation since losing the Ford Power Stroke business?? If so, no wonder they have financial issues

[LSI]

Are we to assume this is the first consolidation since losing the Ford Power Stroke business?? If so, no wonder they have financial issues

What's Ford going to use?

[2stacksuperdog]

Ford is building there own 6.7 powerstoke. Called the scorpion I think?

[blackdog2]

At 22 mill that's a lot pay roll must be a good union pay for 280 jobs.279 bosses 1worker with a lot different hats

[kscarbel2]

Are we to assume this is the first consolidation since losing the Ford Power Stroke business?? If so, no wonder they have financial issues

No, the ramifications of losing the Ford contract in 2010* have long ago come and gone.

*Ford began using their own 6.7 liter engine from April 2010, which was designed by Austria's AVL, a contract engineering company (like the UK's Ricardo) to the OEMs.

https://www.avl.com/company

[MackMann85]

Didn't they start building in Alabama to cut union costs, and now they are saving money by moving back to a union plant? They must have good accountants.

Is the MF11 (MAN D20) still being produced? All I hear about lately is the MF13 and Im starting to think the 11 liter was quietly cancelled.

[kscarbel2]

Navistar engine plant under new ownership in Huntsville

Alabama.com  /  February 6, 2017

The former Navistar International engine plant in Huntsville is under new ownership.

Tuscaloosa-based Pate Holdings said it closed on the purchase of the building in Jetplex Industrial Park near Huntsville International Airport on Friday. Terms of the deal were not disclosed.

The 55-acre property spans more than 555,000 square feet and can accommodate manufacturing, warehouse and logistics work. Pate Holdings owner Stan Pate said the facility is among the best available industrial sites in the Southeast.

Pate believes the property will be successful given President Donald Trump's position on manufacturing and job creation in America.

"We're going to see quickly, if not almost immediately, the uptick in industry looking for locations," he said. "Locations to be able to quickly get into business."

Navistar announced in 2014 it would transfer its mid-range engine production in Huntsville to Melrose Park, Ill., resulting in the loss of 280 local jobs. The move was expected to save Navistar about $22 million in annual operating costs.

Pate is hopeful another significant development will come along and create long-term, quality jobs with the help of local officials and the Huntsville-Madison County Airport Authority.

"We want to see manufacturing there that will create a significant number of jobs rather than some type of warehousing activity or some kind of distribution," he said.

AL.com has contacted the Port of Huntsville and Navistar for comment.

For the right project, Pate said his company would be open to leasing or selling the property.

"We've made it very clear that we're not someone that's going to come in and demo that building," he said. "We're looking to maximize the potential of the property."