Navistar to end 9/10 liter engine production

[kscarbel2]

Fleet Owner  /  August 3, 2017

Company said it will end production of medium-duty 9/10L engines by 2018 and will continue transformation of Melrose Park facility.

Navistar announced that it will cease all engine production at its plant in Melrose Park, IL, by the second quarter of fiscal 2018. The company said it will continue the facility’s transformation into Navistar’s technical center, including truck and engine testing and validation as well as used truck sales and reconditioning, continuing the process that started in 2010.

The majority of engines produced at Melrose Park are medium-duty 9/10 liter engines used in International Class 6 and 7 vehicles, for which alternative engine options are currently offered in all applications. Once completed, the cessation of engine manufacturing at Melrose Park is expected to affect about 170 employees and reduce Navistar’s operating costs by approximately $12 million annually. The company noted it will take an approximate $43 million charge as a result of this action, including approximately $8 million of cash related charges.

“Ceasing production of engines at Melrose Park is a difficult decision, but represents another important step on our journey to strengthening the company’s competitiveness,” said Persio Lisboa, Navistar chief operating officer. “Our N9/10 engine family was updated in 2014 and since then has served as a competitive niche offering for specific medium-duty vehicles. As we approach future regulatory requirements, the low volume nature of the platform could not justify further product development investments on it.”

In 2013, Navistar reintroduced the option of a ISB 6.7 liter Cummins engine [200-325hp] for its Class 6 and 7 medium-duty vehicles, followed in 2016 by a ISL 8.9 liter Cummins engine option [260-380hp].  

“Ending production anywhere is a difficult decision because it affects employees,” Lisboa said. “We continue to be committed to investing in our Melrose Park facility as we complete its transformation into a technical center that is integral to our product design, engineering and sales teams. Given the investments we’ve made, we expect to have a significant presence in Melrose Park for years to come.”

The transformation of the Melrose Park facility began in 2010, when the company added a truck testing and validation center at the 80-acre campus. Truck and engine testing are now being conducted at Melrose Park, in close proximity to Navistar’s product development teams in Lisle and to the company’s New Carlisle, Indiana proving ground*.

*  https://www.bigmacktrucks.com/topic/40066-navistar-buys-668-acre-indiana-proving-grounds-from-bosch/

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[kscarbel2]

Navistar to Cease Engine Production at Melrose Park Plant

Transport Topics  /  August 3, 2017

Manufacturer Navistar International Corp. is phasing out the production of engines at its Melrose Park, Ill., plant and will turn the facility into a technical center for truck and engine testing.

The company said Aug. 3 that the production shutdown will be completed around February to April and affect about 170 employees. The company uses Melrose Park to make its 9- and 10-liter N-Series engines, mainly for Classes 6 and 7 trucks and buses.

The original equipment manufacturer, based in Lisle, Ill., said the move will reduce operating costs by $12 million a year, but it will cost $43 million at the start of the process.

“Ceasing production of engines at Melrose Park is a difficult decision but represents another important step on our journey to strengthening the company’s competitiveness,” Navistar Chief Operating Officer Persio Lisboa said. The N9 competes with the Cummins Inc. ISL engine, which also has 9 liters of displacement.

The Navistar statement said the transformation of Melrose Park began in 2010, when the company added a truck testing-and-validation center at the 80-acre campus. Engine testing was done there for years prior to 2010. The company also has a proving ground in New Carlisle, Ind.

Navistar is a major builder of smaller Class 8 trucks. Often called Baby Eights, these heavy-duty trucks have engines smaller than 10 liters.

During the first half of this year, Navistar ranked second behind Freightliner Trucks in sales of Baby Eight trucks, according to data from WardsAuto.com. There was a major change, though, in that Navistar truck buyers in the segment switched overwhelmingly to Cummins engines from Navistar engines.

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[kscarbel2]

Navistar to End 9/10L Engine Production by 2018

Heavy Duty Trucking  /  August 3, 2017

Navistar announced on Aug. 3 that it will cease production of its medium-duty 9L and 10L engines at the company’s Melrose Park, Illinois, facility by the second quarter of 2018.

The change is part of Navistar’s transformation of the Melrose Park facility into a technical center that conducts truck and engine testing and validation as well as used truck sales and reconditioning. The majority of engines produced at the facility are 9- and 10-liter engines used in International Class 6 and 7 vehicles. Alternative engines are currently offered in all applications.

“Ceasing production of engines at Melrose Park is a difficult decision, but represents another important step on our journey to strengthening the company’s competitiveness,” said Persio Lisboa, Navistar chief operating officer. “Our N9/10 engine family was updated in 2014 and since then has served as a competitive niche offering for specific medium-duty vehicles. As we approach future regulatory requirements, the low-volume nature of the platform could not justify further product development investments on it.”

Navistar reintroduced the option of a 6.7L Cummins engine in 2013 and a 9L Cummins engine in 2016. The Cummins engines that are used in the medium-duty Class 6/7 segment are manufactured in Indiana and North Carolina, while Navistar’s big-bore engine plant, which makes engines for Navistar’s Class 8 trucks, is in Alabama.

The cessation of engine manufacturing at Melrose Park is expected to affect about 170 employees and reduce Navistar’s operating costs by about $12 million annually. The company will take an approximate charge of $43 million as a result of the action, including around $8 million in cash-related charges.

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[kscarbel2]

Navistar to drop its medium duty engines by next year

Jason Cannon, Commercial Carrier Journal (CCJ)  /  August 3, 2017

Navistar announced Thursday plans to cease engine production at its Melrose Park, Ill., plant by early next year as the truck maker continues that facility’s transformation into the company’s technical center.

The move will bring the company’s medium duty 9/10 liter engines to an end.

“Our N9/10 engine family was updated in 2014 and since then has served as a competitive niche offering for specific medium-duty vehicles,” says Persio Lisboa, Navistar chief operating officer. “As we approach future regulatory requirements, the low volume nature of the platform could not justify further product development investments on it.”

Navistar reintroduced the 6.7 liter Cummins engine as an option for its Class 6/7 medium duty vehicles in 2013, and in 2016 made available a 9 liter Cummins engine option. The Cummins ISL and ISB, which now take standard position in those trucks, are manufactured in Indiana and North Carolina, while Navistar’s big bore engine plant in Alabama will continue to make engines for International Class 8 trucks.

The cessation of engine manufacturing at Melrose Park is expected to affect about 170 employees, many of which are retirement eligible, and reduce Navistar’s operating costs by approximately $12 million annually. Assistance and opportunities for retraining will also be offered to affected employees.

“Ending production anywhere is a difficult decision because it affects employees,” Lisboa says. “We continue to be committed to investing in our Melrose Park facility as we complete its transformation into a technical center that is integral to our product design, engineering and sales teams. Given the investments we’ve made, we expect to have a significant presence in Melrose Park for years to come.”

Navistar began the transformation of its Melrose Park facility in 2010 by adding a state-of-the-art truck testing and validation center on the 80-acre campus, which complemented an existing engine test center there, all of which is in close proximity to Navistar’s product development teams in Lisle and to the company’s New Carlisle, Ind., proving ground.

Over the last several months, the company added a used truck evaluation and reconditioning facility and its flagship Used Truck Sales Center to Melrose Park.

Additional consolidation in the former manufacturing space is possible in the future, Navistar says, which would allow even more employees in product design, engineering, service and sales units to work alongside each other.

[RoadwayR]

So those were the last of what began as the DT's?  End of an era, I really liked the old mechanical DT-466.   

[kscarbel2]

17 minutes ago, RoadwayR said:

So those were the last of what began as the DT's?  End of an era, I really liked the old mechanical DT-466.   

DT466, DT570 and HT570. Great engines.

Navistar's mis-guided (Dan Ustian) EGR direction gave all their engines a bad reputation, and being proprietary they needed volume to be viable, as well as justify future investment for tightening emissions.

Ustian is to blame for the premature demise of these engines.

Redesigned in 2014, I feel these are still great engines, particularly set up for SCR. But the Cummins ISB is universally loved. I personally never cared for the ISL in a heavy truck application, but they're selling.

[RoadwayR]

Good for Cummins, they will have most of Navistar's mid-range business until the International's all get MAN diesels!

Navistar needs to consider alternate fuels more seriously too, but that's another subject. 

[Red Horse]

On 8/4/2017 at 11:30 AM, RoadwayR said:

Good for Cummins, they will have most of Navistar's mid-range business until the International's all get MAN diesels!

Navistar needs to consider alternate fuels more seriously too, but that's another subject. 

And is THIS the real reason for them to can their own mid range engines?  Seems like it is a complete turnaround from previous position trying to be vertically integrated.  

A good product and you get rid of it?