NAVISTAR INTERNATIONAL COORPORATION

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Navistar International Coorporation -International Harvester Company (II) 1902 – present Lisle Illinois United States of America

Navistar International Corporation
Public
Traded as NYSENAV
Industry Automotive
Predecessor International Harvester Company
Founded 1902
Headquarters Lisle, Illinois, United States
Area served
North America, South America, Russia, UK, Greece, Eastern Europe, India, Middle East, China, Singapore, South Korea
Key people
Troy A. Clarke, President, Chief Executive Officer
Walter G. Borst, Executive Vice President, Chief Financial Officer
Steven K. Covey, Senior Vice President, General Counsel & Chief Ethics Officer
Products Trucks
Buses and School buses,
Diesel engines
Chassis
Revenue 10.775 billion USD(2013)
Number of employees
16,500
Website www.navistar.com

Nav­is­tar In­ter­na­tional Corporation (for­merly In­ter­na­tional Har­vester Com­pany) is an Amer­i­can hold­ing com­pany that owns the man­u­fac­turer of In­ter­na­tional brand com­mer­cial trucks, IC Bus school and com­mer­cial buses, Work­horse brand chas­sis for motor homes and step vans, and is a pri­vate label de­signer and man­u­fac­turer of diesel en­gines for the pickup truck, van, hoes and SUV mar­kets. The com­pany is also a provider of truck and diesel en­gine parts and service.

Head­quar­tered in Lisle, Illi­nois, Nav­is­tar has 16,500 em­ploy­ees and an an­nual rev­enue of $10.775 bil­lion (in 2013). The com­pany’s prod­ucts, parts, and ser­vices are sold through a net­work of nearly 1,000 dealer out­lets in the United States, Canada, Brazil, and Mex­ico and more than 60 deal­ers in 90 coun­tries through­out the world. The com­pany also pro­vides fi­nanc­ing for its cus­tomers and dis­trib­u­tors prin­ci­pally through its wholly owned sub­sidiary, Nav­is­tar Fi­nan­cial Corporation.

History

The merger of Mc­Cormick Har­vest­ing Ma­chine Com­pany and the Deer­ing Har­vester Com­pany in 1902 re­sulted in the for­ma­tion of the In­ter­na­tional Har­vester Com­pany (IH) of Chicago, Illi­nois, which over the next three-quar­ters of a cen­tury evolved to be­come a di­ver­si­fied man­u­fac­turer of farm­ing equip­ment, con­struc­tion equip­ment, gas tur­bines, trucks, buses, and re­lated com­po­nents. Dur­ing World War II, In­ter­na­tional Har­vester pro­duced the M-se­ries of mil­i­tary trucks that served the Ma­rine Corps and the U.S. Navy as weapons car­ri­ers, cargo trans­porters and light ar­tillery move­ment. Today, Nav­is­tar pro­duces In­ter­na­tional brand mil­i­tary ve­hi­cles through its af­fil­i­ate Nav­is­tar Defense.

1986-1991: Transition from agricultural roots

In­ter­na­tional Har­vester fell on hard times dur­ing the poor agri­cul­tural econ­omy in the early to mid-1980s and the ef­fects of a long strike with the UAW over pro­posed work rule changes. IH’s new CEO, Don­ald Lennox, di­rected the man­age­ment or­ga­ni­za­tion to begin ex­it­ing many of its IH’s his­tor­i­cal busi­ness sec­tors in an ef­fort to sur­vive. Some of the sales of prof­itable busi­ness en­deav­ors were ex­e­cuted to raise cash for short-term sur­vival, while other di­vi­sions were sold due to lack of im­me­di­ate prof­itabil­ity. Dur­ing this pe­riod of ques­tion­able eco­nomic sur­vival, in an ef­fort to raise needed cash and to re­duce losses, the man­age­ment team led by Mr. Lennox at IH shed many of its op­er­at­ing di­vi­sions: Con­struc­tion Equip­ment Di­vi­sion to Dresser In­dus­tries; Solar (gas tur­bines) Di­vi­sion to Cater­pil­lar; Cub Cadet (lawn and gar­den equip­ment) to MTD Prod­ucts and, lastly, the Agri­cul­tural Di­vi­sion to Ten­neco, which merged it with their J.I. Case sub­sidiary. The Scout and Light Truck Parts Busi­ness was sold to Scout/Light Line Dis­trib­u­tors, Inc. in 1991.

After the Agri­cul­tural Di­vi­sion sale in 1985, all that re­mained of IH was the Truck and En­gine Di­vi­sions. The com­pany changed its name in 1986 to Nav­is­tar In­ter­na­tional Cor­po­ra­tion. (The In­ter­na­tional Har­vester name and IH logo were as­sets of the Agri­cul­tural Di­vi­sion and con­se­quently were part of the sale to Ten­neco; the IH name and logo are still in use, hav­ing been in­cor­po­rated into the Case IH brand name). In the early 1980s, IH de­vel­oped a se­ries of re­li­able large-dis­place­ment V8 diesel en­gines that were sold as an op­tion for heavy-duty Ford 3/4-ton and 1-ton pickup trucks.

Nav­is­tar still uses the “In­ter­na­tional” brand in its diesel en­gine and truck prod­uct lines, and the brand name con­tin­ues on in prod­uct lines of Nav­is­tar In­ter­na­tional’s In­ter­na­tional Truck and En­gine Cor­po­ra­tion subsidiary.

1990s-early 2000s: Rediversification

Dur­ing the 1980s and 1990s, the pop­u­lar­ity of diesel en­gines had made Nav­is­tar a lead­ing man­u­fac­turer of bus chas­sis, par­tic­u­larly school buses. The com­pany pur­chased one-third of Amer­i­can Trans­porta­tion Cor­po­ra­tion (Am­Tran), an Arkansas-based man­u­fac­turer in 1991, and the re­main­ing two-thirds in April 1995. By be­com­ing both a body and chas­sis man­u­fac­turer at the same time, Nav­is­tar gained sig­nif­i­cant mar­ket share in the in­dus­try. In 2002, Am­Tran was re­branded as IC (In­te­grated Coach) after a few months as In­ter­na­tional Truck and Bus.

After nearly a cen­tury of busi­ness in Chicago, Nav­is­tar an­nounced its plans on 30 Sep­tem­ber 2000 to leave the city and re­lo­cate its cor­po­rate of­fices to west sub­ur­ban War­renville, Illi­nois. The com­pany’s Mel­rose Park, Illi­nois plant is no­table for a sig­nif­i­cant work­place shoot­ing on Feb­ru­ary 5, 2001.

International MXT Wayco.ca
International MXT, the smallest of the
2004-08 International CXT Commercial Extreme Truck 1
XT pickup trucks

In 2004, Nav­is­tar re-en­tered the re­tail ve­hi­cle mar­ket for the first time since 1980. The In­ter­na­tional XT (Ex­treme Truck) pickup truck was a se­ries of three pickup trucks. It was (by far) the largest pickup truck avail­able for re­tail sale and two of the three ver­sions (the CXT and RXT) were es­sen­tially2002 International DuraStar MuncyTruck

In­ter­na­tional Duras­tar medium-duty trucks fit­ted with pickup beds. The third ver­sion (the MXT) was es­sen­tially a street-le­gal ver­sion of a2006 International MXT-MV HuskyNav­is­tar-de­signed mil­i­tary ve­hi­cle. The three XT trucks were sold until 2008.

In 2005, Nav­is­tar pur­chased the Work­horse com­pany (started in 1998 by in­vestors who took over pro­duc­tion and sales of Gen­eral Mo­tors’ pop­u­lar P-se­ries Step­van chas­sis when GM dropped it), a man­u­fac­turer of step-van and motor home chas­sis, to seem­ingly re-en­ter the de­liv­ery van market. It ap­peared that the new sub­sidiary might also ben­e­fit by its as­so­ci­a­tion with a com­pany whose his­tory from the 1930s into the ’60s in­cluded the pop­u­lar1938-1975 Preserved International Harvester Metro Van in Portland in 2012Metro van. For a short time Work­horse of­fered an in­te­grated chas­sis-body prod­uct called Met­roStar. In Sept. of 2012, Nav­is­tar an­nounced the shut down of Work­horse and the clo­sure of the plant in Union City, IN in order to cut costs.

2006-2008

Accounting issues

In Jan­u­ary 2006, the com­pany de­clared it would not file its form 10-K an­nual re­port with the U.S. Se­cu­ri­ties and Ex­change Com­mis­sion on time. The delay was caused by the dis­agree­ment with its au­di­tors, De­loitte and Touche, over com­plex ac­count­ing is­sues. In April, Nav­is­tar fired De­loitte, its in­de­pen­dent au­di­tor for 98 years, and hired KPMG to help re­state earn­ings back to 2002 to fix ac­count­ing er­rors. On De­cem­ber 15, 2006, Nav­is­tar ex­ec­u­tives an­nounced fur­ther delay of its re­state­ment and 2006 re­sults. The an­nounce­ment prompted the New York Stock Ex­change (NYSE) to an­nounce the delist­ing of the com­pany, after 98 years of trad­ing, al­though the NYSE sub­se­quently de­layed the delist­ing pend­ing an ap­peal by Nav­is­tar. How­ever, Nav­is­tar was re­moved from the S&P 500 Index, and the NYSE even­tu­ally de­nied Nav­is­tar’s ap­peal and delisted the stock; it traded on the Pink Sheets until 30 June 2008, when it was relisted on the NYSE, under its pre­vi­ous ticker sym­bol, NAV, after catch­ing up with its filings. Christo­pher An­der­son, the De­loitte part­ner re­spon­si­ble for the 2003 audit, ac­cepted a one-year sus­pen­sion from pub­lic au­dits in 2008, and be­came the first in­di­vid­ual to be fined by the PCAOB.

CEO Daniel Us­t­ian agreed to sur­ren­der to Nav­is­tar shares worth $1.3 mil­lion, while for­mer Chief Fi­nan­cial Of­fi­cer Robert C. Lan­nert con­sented to repay $1.05 mil­lion, each sum re­flect­ing mon­e­tary bonuses they had re­ceived dur­ing the re­state­ment pe­riod, the SEC said. Four other com­pany ex­ec­u­tives paid civil penal­ties with­out ad­mit­ting liability.

In De­cem­ber 2014, Nav­is­tar dis­closed more ac­count­ing prob­lems. These in­volved out-of-pe­riod ad­just­ments, which were cor­rec­tions of prior pe­riod er­rors re­lat­ing to prod­uct war­ranties. This re­sulted in a $36 mil­lion in­crease in Cost of Prod­ucts Sold. In ad­di­tion, a ma­te­r­ial weak­ness was dis­closed. In the com­pany’s an­nual 10K, they re­ported that weak­ness was “sur­round­ing val­i­da­tion of the com­plete­ness and ac­cu­racy of un­der­ly­ing data used in the de­ter­mi­na­tion of sig­nif­i­cant ac­count­ing es­ti­mates and ac­count­ing trans­ac­tions. Specif­i­cally, con­trols were not de­signed to iden­tify er­rors in the un­der­ly­ing data which was used to cal­cu­late war­ranty cost es­ti­mates and other sig­nif­i­cant ac­count­ing es­ti­mates and the ac­count­ing ef­fects of sig­nif­i­cant transactions.

Hybrids and Navistar Defense LLC, 2003-present

In Oc­to­ber 2003, 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 26 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.S. mil­i­tary and other NATO coun­tries could lever­age for prod­ucts and services.”

In 2007, Nav­is­tar’s In­ter­na­tional Truck and En­gine Cor­po­ra­tion be­came the first com­pany to enter hy­brid com­mer­cial truck pro­duc­tion, with theUPSIntl4000In­ter­na­tional DuraS­tar Hy­brid diesel-elec­trictruck.

Nav­is­tar De­fense LLC is the prime sup­plier of2007-present International MaxxPro MRAPMRAP ar­mored ve­hi­cles to the US mil­i­tary. The Navistar 7000 seriesNav­is­tar 7000 se­ries has been fielded by the Cana­dian Forces for do­mes­tic op­er­a­tions. In 2005, the U.S. Army or­dered 2,900 7000-MVs for the Afghan Na­tional Army and Iraqi Min­istry of De­fense and an ad­di­tional order of 7,000 was added in 2008.

Nav­is­tar De­fense also has a small Cana­dian branch, named Nav­is­tar De­fence Canada.

Nav­is­tar De­fense re­ported sales of $3.9 bil­lion in 2008 and $2.8 bil­lion in 2009.

In Oc­to­ber 2009, the com­pany en­tered into a strate­gic agree­ment with Czech-based com­pany Tatra to jointly de­velop, pro­duce and mar­ket new mil­i­tary vehicles.

In De­cem­ber 2009, an­a­lysts were skep­ti­cal of the com­pany’s long-term po­ten­tial. “Nav­is­tar came out of nowhere and be­came a big player with MRAP, in what was a short-term pro­gram,” said Dean Lock­wood, an an­a­lyst at Fore­cast In­ter­na­tional Inc., a Con­necti­cut-based de­fense con­sul­tant. “They didn’t prove them­selves to be a long-term major player.”

In 2010, Nav­is­tar De­fense’s sales were $1.8 bil­lion. The com­pany’s 2010 An­nual 10K re­port stated “we con­tinue to ex­pect that over the long term our mil­i­tary busi­ness will gen­er­ate ap­prox­i­mately $1.5 bil­lion to $2 bil­lion in an­nual sales.”

In 2011, Nav­is­tar De­fense’s sales were $2.0 billion.

In 2012, Nav­is­tar De­fense re­ported $1.0 bil­lion in sales. Busi­ness In­sider ranked Nav­is­tar De­fense at 22 in the top 25 US de­fense companies.

In 2013, Nav­is­tar De­fense re­ported $543 mil­lion in sales. In the com­pany’s 10K fil­ing, they pro­jected mil­i­tary sales to con­tinue to de­cline, cit­ing U.S. bud­getary constraints.

In 2014, Nav­is­tar De­fense re­ported $149 mil­lion in sales. The com­pany pro­jected 2015 mil­i­tary sales to be slightly higher due to re­cent con­tract awards re­lat­ing to the gov­ern­ment’s MRAP fleet.

Contract awards, losses and other events

On Au­gust 22, 2012, Nav­is­tar De­fense lost their bid for the En­gi­neer­ing, Man­u­fac­tur­ing & De­vel­op­ment (EMD) con­tract worth $187 mil­lion for the Army and Ma­rine Corps’ Joint Light Tac­ti­cal Ve­hi­cle (JLTV) pro­gram. Nav­is­tar had pro­posed its Saratoga ve­hi­cle for the com­pe­ti­tion. On Fri­day Au­gust 28, 2012, Nav­is­tar filed a protest with the Gov­ern­ment Ac­count­abil­ity Of­fice (GAO), but pulled their protest on Tues­day, Sep­tem­ber 4, 2012.

On June 20, 2013, Nav­is­tar De­fense idled pro­duc­tion at their West Point, MS pro­duc­tion plant. 80 work­ers were no­ti­fied that July 5, 2013 would be their last day. West Point was best known for man­u­fac­tur­ing MRAP ve­hi­cles. The com­pany cited se­ques­tra­tion, the draw­down in Afghanistan and a chal­leng­ing en­vi­ron­ment in the de­fense in­dus­try as factors.

Navistar-International-Symbol

On Au­gust 22, 2013, Nav­is­tar De­fense lost their bid for the Ground Mo­bil­ity Ve­hi­cle (GMV) 1.1 con­tract, po­ten­tially val­ued at $562 million. Nav­is­tar had pro­posed its Spe­cial Op­er­a­tions Tac­ti­cal Ve­hi­cle (SOTV) for the com­pe­ti­tion. On Tues­day Sep­tem­ber 1, 2013, Nav­is­tar De­fense and AM Gen­eral filed a protest. On De­cem­ber 19, 2013, the Gov­ern­ment Ac­count­abil­ity Of­fice (GAO) de­nied Nav­is­tar and AM Gen­eral’s protests.

In Jan­u­ary 2014, the Pen­ta­gon an­nounced they had no­ti­fied al­lies of their in­tent to give away or scrap 13,000 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.S. Re­cip­i­ents have in­cluded var­i­ous po­lice de­part­ments and some uni­ver­si­ties. Nav­is­tar De­fense built 9,000 of the 27,000 ve­hi­cles bought by the Pen­ta­gon. Giv­ing away the MRAPs was seen as a blow to Nav­is­tar De­fense’s parts sales.

In De­cem­ber 2014, Nav­is­tar De­fense lost their bid for the En­gi­neer­ing, Man­u­fac­tur­ing De­vel­op­ment (EMD) con­tract for the Ar­mored Multi-Pur­pose Ve­hi­cle (AMPV). BAE was awarded the $382 mil­lion con­tract on De­cem­ber 23, 2014.

Nav­is­tar De­fense lost their bid for Canada’s De­part­ment of Na­tional De­fence (DND) MSVS (Medium Sup­port Ve­hi­cle Sys­tem) Pro­ject – SMP (Stan­dard Mil­i­tary Pat­tern) ve­hi­cles con­tracts. They pro­posed their ATX8 ve­hi­cle as part of an agree­ment with Czech-based com­pany Tatra. The con­tract was for ac­qui­si­tion and in-ser­vice sup­port (ISS) of a fleet of up to 1,500 SMP ve­hi­cles, up to 150 Ar­mour Pro­tec­tion Sys­tems (APS) kits, and 300 Load Han­dling Sys­tem (LHS) trailers. Com­peti­tors in­clude Oshkosh (MTVR), BAE Sys­tems (FMTV), Daim­ler AG (Zet­ros), Re­nault Trucks (Kerax 8×8) and Rhein­metall/ MAN (HX77 8×8). A con­tract award de­ci­sion is ex­pected in June 2015. On July 16, 2015, Canada awarded the Ac­qui­si­tion and In Ser­vice Sup­port con­tracts to Mack De­fense, LLC (Re­nault Trucks).

On July 25, 2014, the DOD awarded a $27.6 mil­lion mod­i­fi­ca­tion to an ex­ist­ing con­tract to ac­quire mine-re­sis­tant, am­bush-pro­tected hard­ware kits to up­grade MaxxPro Dash and long-wheel base am­bu­lances to their final con­fig­u­ra­tion. Es­ti­mated com­ple­tion date is May 30, 2015.

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On Au­gust 27, 2014, the DOD awarded a $38 mil­lion con­tract to Nav­is­tar De­fense to re­store MRAP Maxx Pro Dash ve­hi­cles to “like-new” stan­dards. The DOD re­ported that Nav­is­tar was the only bid­der. The work in­cludes adding in­de­pen­dent sus­pen­sion sys­tems and re­place­ment of manda­tory parts, with an es­ti­mated com­ple­tion date of June 30, 2016. Work will be per­formed in West Point, MS.

In Sep­tem­ber 2014, Nav­is­tar De­fense an­nounced they would hire 200 work­ers and re-open op­er­a­tions at their West Point, MS pro­duc­tion plant. West Point had been idle since June 2013 due to se­ques­tra­tion, the draw­down in Afghanistan and de­clin­ing orders.

In Sep­tem­ber 2014, amidst nu­mer­ous di­vesti­tures, Nav­is­tar Inc. CEO Troy Clark gave Nav­is­tar De­fense a vote of con­fi­dence, not­ing that the mil­i­tary busi­ness unit would be re­tained. In a Sep­tem­ber 2014 in­ter­view with Reuters he said “it’s not a bil­lion-dol­lar growth op­por­tu­nity, but it’s not some­thing that’s bleed­ing off the fu­ture for­tunes of our company.”

On Oc­to­ber 14, 2014, Nav­is­tar De­fense was awarded a $9.2 mil­lion firm-fixed price for­eign mil­i­tary sale (FMS) con­tract to Jor­dan for one hun­dred 4-ton 4×4 cargo trucks and twenty days of op­er­a­tor and main­te­nance train­ing. Work will be per­formed in New Carlisle, Ohio with an es­ti­mated com­ple­tion date of May 20, 2015. Bids were so­licited via the in­ter­net with nine­teen received.

On Feb­ru­ary 2, 2015, Nav­is­tar De­fense was awarded a $15,381,152 firm-fixed-price con­tract with op­tions for eight MRAP MaxxPro Hard­ware Kits to sup­port MaxxPro ve­hi­cle stan­dard­iza­tion and reset. Work will be per­formed in Lisle, Illi­nois, with an es­ti­mated com­ple­tion date of July 16, 2016. Bids were so­licited via the In­ter­net with one re­ceived. Fis­cal 2015 other pro­cure­ment (Army) funds in the amount of $15,381,152 are being ob­lig­ated at the time of the award. Army Con­tract­ing Com­mand, War­ren, Michi­gan, is the con­tract­ing ac­tiv­ity (W56HZV-15-C-0070).

On March 18, 2015, Nav­is­tar De­fense was awarded a $83,424,223 cost-plus-fixed-fee multi-year con­tract for sys­tem tech­ni­cal sup­port and sys­tem sus­tain­ment tech­ni­cal sup­port for MRAP MaxxPro ve­hi­cles. Fund­ing and work lo­ca­tion will be de­ter­mined with each order with an es­ti­mated com­ple­tion date of March 31, 2019. One bid was so­licited with one re­ceived. Army Con­tract­ing Com­mand, War­ren, Michi­gan, is the con­tract­ing ac­tiv­ity (W56HZV-15-D-0037).

NavistarLogo1

On April 13, 2015, Nav­is­tar De­fense was awarded a $17,522,057 firm-fixed-price con­tract with op­tions to pro­cure seven Mine Re­sis­tant Am­bush Pro­tec­tion MaxxPro Dash hard­ware kits for MaxxPro ve­hi­cle stan­dard­iza­tion and reset. Work will be per­formed in Lisle, Illi­nois, with an es­ti­mated com­ple­tion date of Dec. 31, 2015. One bid was so­licited with one re­ceived. Fis­cal 2014 and 2015 other funds in the amount of $17,522,057 are being ob­lig­ated at the time of the award. Army Con­tract­ing Com­mand, War­ren, Michi­gan, is the con­tract­ing ac­tiv­ity (W56HZV-15-C-0092).

On April 30, 2015, Nav­is­tar De­fense was awarded a $31,199,783 mod­i­fi­ca­tion (P00004) to con­tract W56HZV-14-C-0102 for reset and up­grade of the MRAP (mine-re­sis­tant am­bush pro­tected) fam­ily of ve­hi­cles to Code-A stan­dards. Work will be per­formed in West Point, Mis­sis­sippi, with an es­ti­mated com­ple­tion date of July 31, 2016. Fis­cal 2013 and 2015 other pro­cure­ment (Army) and op­er­a­tions and main­te­nance (Army) funds in the amount of $17,990,419 were ob­lig­ated at the time of the award. Army Con­tract­ing Com­mand, War­ren, Michi­gan, is the con­tract­ing activity.

In April 2015, Nav­is­tar De­fense Pres­i­dent Bob Walsh re­signed. On May 19, Kevin Thomas was pro­moted to President.

2001-Present: Failed engine strategy, layoffs, consolidation and turnaround

Failed Engine Strategy

In 2001, then CEO Dan Us­t­ian faced nu­mer­ous EPA reg­u­la­tions to re­duce the amount of ni­tro­gen ox­ides and soot em­a­nat­ing from diesel en­gines. De­spite the change in the com­pli­ance arena, the reg­u­la­tions would not begin to be phased in until 2007, with full im­ple­men­ta­tion slated for 2010.

navistar_logo

Us­t­ian had mul­ti­ple en­gi­neer­ing paths avail­able. Among them were Se­lec­tive Cat­alytic Re­duc­tion (SCR), Ex­haust Gas Re­cir­cu­la­tion (EGR) or the use of ni­tro­gen oxide ab­sorbers. All re­quired more en­gi­neer­ing and de­vel­op­ment to achieve com­pli­ance. Us­t­ian be­lieved truck­ers did not want to bother with an extra tank of fluid af­tertreat­ment. As a re­sult, he con­vinced the com­pany to spend $700 mil­lion to fund EGR development.

On Oc­to­ber 31, 2007, Nav­is­tar for­mally an­nounced their in­tent to move for­ward with EGR as the com­pany’s strat­egy. The com­pany state­ment in­cluded Us­t­ian men­tion­ing “I have pub­licly been an ad­vo­cate of cus­tomer friendly emis­sions con­trol so­lu­tions which do not add ad­di­tional costs to our truck and bus cus­tomers. While SCR is a means to achieve the NOx re­duc­tion re­quire­ment for 2010, it comes with a steep cost to our cus­tomers. Our abil­ity to achieve our goals with­out adding cus­tomer cost and in­con­ve­nience is a com­pet­i­tive ad­van­tage for International.”

On No­vem­ber 24, 2008, Nav­is­tar re­vealed it would use EPA Cred­its in order to com­ply with the 2010 legislation.

In Feb­ru­ary 2009, Us­t­ian touted the ben­e­fits of EGR tech­nol­ogy as a key dif­fer­en­tia­tor for the com­pany’s en­gines. How­ever, by now, the rest of the in­dus­try had cho­sen to use the com­pli­ant SCR tech­nol­ogy. Us­t­ian dis­agreed with SCR, say­ing “the other thing that EGR avoids is the risks of an SCR strat­egy. Read the label on this and it will show you that there are chal­lenges with keep­ing con­trol of using this tech­nol­ogy: ‘Store be­tween 23 de­grees and 68 de­grees.’ So es­sen­tially it says you can’t throw it out­side. You can’t op­er­ate it in con­di­tions above 85 [de­grees] or below 12 [de­grees]. You can, but, it will put the bur­den onto the cus­tomers.”

Non-Conformance Penalties

The EPA rec­og­nized Nav­is­tar’s im­mi­nent non-com­pli­ance and cre­ated a sys­tem of Non-Con­for­mance Penal­ties (NCPs) that in­cluded a $1,919 dol­lar fine for every non-com­pli­ant en­gine that Nav­is­tar sold. To bridge the gap, Nav­is­tar began using EPA cred­its it had pre­vi­ously earned for being com­pli­ant in lieu of pay­ing fines. In Au­gust 2012, Nav­is­tar stated they would run out of EPA cred­its soon. Only days ear­lier the EPA an­nounced in­creased new penal­ties of $3,744 per engine.

IC_Bus_Grill

In March 2009, Nav­is­tar sued the EPA, claim­ing that the agency’s guid­ance doc­u­ments for SCR im­ple­men­ta­tion were in­valid be­cause they were adopted with­out a pub­lic process and with input only from the SCR en­gine mak­ers. Nav­is­tar and the EPA set­tled the law­suit a year later.

Fur­ther mask­ing the EGR prob­lem were high mil­i­tary sales. In the com­pany’s 2010 10K re­port, Nav­is­tar cited or­ders for MRAPs as off­set­ting flat com­mer­cial sales due to the recession.

Move to Lisle, IL

In Sep­tem­ber 2010, de­spite un­cer­tainty over EGR and a slug­gish econ­omy, Nav­is­tar lead­er­ship re­vived an ef­fort to re­lo­cate the com­pany head­quar­ters from War­renville, IL, to nearby Lisle, IL. The new head­quar­ters was ex­pected to re­tain or cre­ate 3,000 per­ma­nent jobs and about 400 con­struc­tion jobs. Nav­is­tar Pres­i­dent Dan Us­t­ian said roughly 500 en­gi­neers would be hired im­me­di­ately. Nav­is­tar aimed to in­vest $110 mil­lion in the 1.2 mil­lion-square-foot Lisle cam­pus, which would in­clude prod­uct de­vel­op­ment. The state gave Nav­is­tar in­cen­tives of nearly $65 mil­lion, in­clud­ing tax credits.

In March 2011, Nav­is­tar an­nounced the move to Lisle. Ren­o­va­tions were com­pleted in the fall, but the com­pany grad­u­ally moved from War­renville to Lisle in sum­mer 2011. “You can’t build a cam­pus like this any­where for any­where near the price we paid for this, and even though you might get more in­cen­tives, when you look at the whole pic­ture, you re­ally can’t beat it,” said Don Sharp, Nav­is­tar vice president.

In 2011, Nav­is­tar began phas­ing out its Truck De­vel­op­ment and Tech­nol­ogy Cen­ter (TDTC) in Fort Wayne, In­di­ana. In early De­cem­ber 2011, the com­pany laid off 130 em­ploy­ees, mostly en­gi­neers and de­sign­ers who were United Auto Work­ers members. In total, 300 out of 1,400 Fort Wayne em­ploy­ees even­tu­ally ac­cepted of­fers to re­lo­cate to Illi­nois. The other 1,100 work­ers ei­ther re­tired or chose to re­main in In­di­ana and find work elsewhere. The cost to move em­ploy­ees and con­sol­i­date op­er­a­tions was es­ti­mated to be $75 mil­lion. The only Nav­is­tar em­ploy­ees re­main­ing after De­cem­ber 2012 were 20-25 peo­ple man­ning the com­pany’s test track on Ox­ford Street. In late July 2015, the TDTC closed and the re­main­ing work­ers were let go.

International-Harvester-2

In Jan­u­ary 2012, the EPA adopted an in­terim final rule that al­lowed Nav­is­tar to con­tinue sell­ing the en­gines sub­ject to NCPs. Sev­eral Nav­is­tar com­peti­tors sued, and in June 2012 the same ap­peals court ruled that EPA’s in­terim rule was in­valid be­cause it did not give the pub­lic no­tice and an op­por­tu­nity for comment.

In the mean time, Nav­is­tar’s EGR de­ci­sion had led to sig­nif­i­cant re­li­a­bil­ity and qual­ity prob­lems. Truck dri­vers began los­ing trust and con­fi­dence as Nav­is­tar ve­hi­cles were break­ing down fre­quently. Con­se­quently, they aban­doned Nav­is­tar trucks in favor of com­peti­tor’s trucks.

Tension Mounts

In June 2012, spec­u­la­tion mounted about a pos­si­ble takeover of the strug­gling truck maker. This came as hedge fund MHR Fund Man­age­ment LLC dis­closed a 13.6% stake in the com­pany, slightly higher than bil­lion­aire ac­tivist in­vestor Carl Icahn’s 11.9% stake. As a re­sult, Nav­is­tar adopted a poi­son pill de­fense. If the plan were trig­gered by an out­side in­vestor tak­ing a stake of 15 per­cent or more in the com­pany, then Nav­is­tar would issue its share­hold­ers rights that would let them buy new com­mon stock in the com­pany at a dis­count of 50 per­cent: For each share held, the in­vestor could buy $280 worth of new shares for $140. The in­vestor who took the 15 per­cent stake or more would not have the right to buy ad­di­tional shares.

In Au­gust 2012, Nav­is­tar an­nounced it would use Cum­mins en­gines and SCR technology. After 37 years with the com­pany, Dan Us­t­ian re­tired im­me­di­ately in Au­gust 2012 and left his po­si­tion on the board as well. For­mer Tex­tron CEO Lewis Camp­bell was named in­terim CEO and Troy Clarke was pro­moted to Chief Op­er­at­ing Officer. Us­t­ian’s sev­er­ance pack­age began at $7.9 mil­lion. The com­pany’s proxy state­ment dur­ing this time es­ti­mated the total pack­age to be $14.6 mil­lion, con­tin­gent on a share price of $42.07 on Oct. 31, 2011, the end of the com­pany’s fis­cal year.

On Sep­tem­ber 9, 2012, 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.” Icahn noted from 2009-2012, that “this Board has au­tho­rized spend­ing share­holder money on law­suits against sup­pli­ers, com­peti­tors and reg­u­la­tors, mar­ket­ing plans to con­vince cus­tomers that non-com­pli­ant en­gines are ac­tu­ally com­pli­ant, ac­cu­mu­lat­ing non-core as­sets such as a Recre­ational Ve­hi­cle man­u­fac­turer, and a “gold-plated” cor­po­rate head­quar­ters that cost over $100 mil­lion. 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.”

navistar_logo (1)

In a Sep­tem­ber 2012 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.

In Oc­to­ber 2012, Chief Prod­uct Of­fi­cer Deepak Kapur stepped down, fol­lowed by Group Vice Pres­i­dent of Prod­uct De­vel­op­ment Ramin Younessi in De­cem­ber 2012. CIO Don Sharp also left the com­pany in April 2013.

Layoffs and consolidation

Au­gust 2012 fea­tured a Vol­un­tary Sep­a­ra­tion Pro­gram (VSP) as well as in­vol­un­tary lay­offs. This was due to the failed en­gine strat­egy, ris­ing war­ranty costs and de­clines in com­mer­cial and mil­i­tary sales. The com­pany let go 500 em­ploy­ees and in Sep­tem­ber 2012, an­nounced plans to lay off 200 more salaried employees.

In ad­di­tion, the com­pany an­nounced it would close its Gar­land, Texas man­u­fac­tur­ing fa­cil­ity by mid-2013, re­sult­ing in the loss of 900 jobs.

In March 2013, Nav­is­tar an­nounced that in­terim CEO Lewis Camp­bell would step down and COO Troy Clarke would be named CEO and Chair­man of the Board. Jack Allen was named COO. In June 2013, CFO A.J. 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 late June 2013, for­mer Gen­eral Mo­tors ex­ec­u­tive Wal­ter Borst was named Ex­ec­u­tive VP and CFO.

In Sep­tem­ber 2013, Nav­is­tar an­nounced it would cut 500 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 2014, a third round of lay-offs in as many years oc­curred at the cor­po­rate head­quar­ters as part of on­go­ing cost cut­ting measures.

On July 31, 2015, Nav­is­tar ceased op­er­a­tions and laid off the re­main­ing 15 em­ploy­ees at the Truck De­vel­op­ment and Tech­nol­ogy Cen­ter (TDTC) in Fort Wayne, Indiana.

Cost-cutting and divestitures

As part of the turn­around plan, Nav­is­tar ex­ec­u­tives cut costs ag­gres­sively. They cut SG&A costs by 16% in 2013 and cut prod­uct de­vel­op­ment spend­ing by 24%. In­terim CEO Lewis Camp­bell’s pri­or­i­ties in­cluded a focus on qual­ity, re­duc­ing the com­pany’s cost struc­ture and par­ing back its prod­uct line.

NAVISTARlogo

Nav­is­tar also sold sev­eral busi­nesses that it deemed were not pro­vid­ing enough of a Re­turn On In­vested Cap­i­tal (ROIC). Among them were their Monaco RV busi­ness as well as Work­horse Chassis. They also ex­ited their joint ven­ture with Mahin­dra  and sold off their E-Z Pack unit, which made bod­ies for garbage trucks, as well as its Con­ti­nen­tal Mixer unit, which made con­crete mix­ers, for prices the com­pany char­ac­ter­ized as “not material.”

In Jan­u­ary 2014, Forbes re­ported sev­eral key chal­lenges fac­ing Nav­is­tar, which in­clude de­clin­ing mil­i­tary sales, a pen­sion plan un­der­funded by $2.7 bil­lion, two self-dis­closed weak­nesses in ac­count­ing prac­tices and a new col­lec­tive bar­gain­ing agree­ment for the com­pany’s 6,000 full and part-time work­ers who are rep­re­sented by labor unions.

In Feb­ru­ary 2014, Nav­is­tar an­nounced it would move some en­gine pro­duc­tion op­er­a­tions from Huntsville, AL, to Mel­rose Park, IL by sum­mer 2014. The move elim­i­nated 280 jobs in Al­abama and saved an es­ti­mated $22 mil­lion. Nav­is­tar said it would keep two other diesel en­gine plants op­er­at­ing in Huntsville.

In Sep­tem­ber 2014, Nav­is­tar re­ported its best quar­ter in years. It an­nounced a third quar­ter net loss of $2 mil­lion, or $0.02 per di­luted share, com­pared to a third quar­ter 2013 net loss of $247 mil­lion, or $3.06 per di­luted share. It was also in Sep­tem­ber that CEO Troy Clarke an­nounced that the com­pany’s biggest di­vesti­tures were com­plete, and that the focus would now be on re­gain­ing lost mar­ket share.

On No­vem­ber 6, 2014, lead­er­ship changes con­tin­ued at Nav­is­tar, with Ex­ec­u­tive VP and COO Jack Allen re­tir­ing im­me­di­ately. Rather than hire a new COO, CEO Troy Clarke split the COO du­ties among three other executives.

Legal issues and struggle for profitability

In De­cem­ber 2014, the United States Ju­di­cial Panel on Mul­ti­dis­trict Lit­i­ga­tion or­dered that 13 of 14 civil law­suits brought against Nav­is­tar for MaxxForce en­gines would be con­sol­i­dated into one case. The con­sol­i­dated law­suits say Nav­is­tar’s use of Ad­vanced Ex­haust Gas Re­cir­cu­la­tion emis­sion con­trol sys­tem, or EGR, was de­fec­tive and re­sulted in re­peated en­gine fail­ures and fre­quent re­pairs and downtime.

On De­cem­ber 16, 2014, Nav­is­tar re­ported a larger than ex­pected 4th quar­ter net loss of $72 mil­lion. While sales rose 9 per­cent to $3 bil­lion, the com­pany cited re­struc­tur­ing and war­ranty costs as the main rea­sons for the loss. A day ear­lier, the com­pany an­nounced it would be clos­ing its en­gine foundry in In­di­anapo­lis, re­sult­ing in the loss of 100 jobs and cost­ing $11 mil­lion. The com­pany es­ti­mated an­nual sav­ings of $13 mil­lion in op­er­at­ing costs.

In March 2015, Nav­is­tar re­ported a first quar­ter 2015 net loss of $42 mil­lion, or $0.52 per di­luted share, com­pared to a first quar­ter 2014 net loss of $248 mil­lion, or $3.05 per di­luted share. Rev­enues in the quar­ter were $2.4 bil­lion, up $213 mil­lion or 10 per­cent, ver­sus the first quar­ter of 2014. The higher rev­enues in the quar­ter were dri­ven by a 17 per­cent year-over-year in­crease in char­ge­outs for Class 6-8 trucks and buses in the United States and Canada. This in­cluded a 42 per­cent in­crease in school buses; a 25 per­cent in­crease in Class 6/7 medium trucks; a 7 per­cent in­crease in Class 8 heavy trucks; and a 5 per­cent in­crease in Class 8 se­vere ser­vice trucks. Higher sales in the com­pany’s ex­port truck op­er­a­tions also con­tributed to the in­crease, par­tially off­set by a de­crease in used truck sales. The com­pany fin­ished the first quar­ter with a 27 per­cent year-over-year in­crease in order back­log for Class 6-8 trucks.

On June 4, 2015, Nav­is­tar re­ported a sec­ond quar­ter net loss of $64 mil­lion, or 78 cents a share, com­pared with a year-ear­lier loss of $297 mil­lion, or $3.65 a share. Rev­enue fell to $2.69 bil­lion from $2.75 bil­lion. An­a­lysts had ex­pected a loss of 18 cents a share and rev­enue of $2.82 billion.

On June 9, 2015, Nav­is­tar named Jeff Sass as the new Se­nior VP of North Amer­i­can Truck Sales. Sass pre­vi­ously worked 20 years for rival Paccar.

On June 12, 2015, Mark Rachesky’s MHR Fund Man­age­ment LLC dis­closed a 6% in­creased stake in Nav­is­tar, up to 15,446,562 shares. The firm now owns 18.9% of Navistar.

In July 2015, the En­vi­ron­men­tal Pro­tec­tion Agency filed a civil law­suit against Nav­is­tar seek­ing $300 mil­lion in fines over its use of non-com­pli­ant en­gines in its 2010-model trucks – en­gines that did not meet the agency’s ex­haust emis­sion standards. “Be­cause (Nav­is­tar) com­pleted man­u­fac­tur­ing and as­sem­bling processes for the sub­ject en­gines in 2010 … each and every en­gine was ‘pro­duced’ in 2010 and is there­fore not a model 2009 en­gine,” the com­plaint said. Nav­is­tar clas­si­fied the en­gines as 2009 model year en­gines be­cause it began as­sem­bling them in 2009. Nav­is­tar has stated they dis­pute the al­le­ga­tions and would “ag­gres­sively de­fend” their position.

On July 20, 2015, Nav­is­tar an­nounced that it was re­fi­nanc­ing the $697.5 mil­lion se­nior se­cured term loan fa­cil­ity of Nav­is­tar, Inc., which ma­tures in Au­gust 2017, with a new $1.040 bil­lion se­nior se­cured term loan, which will ma­ture in Au­gust 2020. The re­fi­nanc­ing will ex­tend the ma­tu­rity of the term loan fa­cil­ity and pro­vide ad­di­tional liq­uid­ity and fi­nan­cial flex­i­bil­ity for the company.

Brands

International Trucks

UPSIntl4000
 DuraStar Box (van body) truck
Navistar International Prostar
 ProStar® Semi tractor
FEMA - 38851 - County Road crew cleans storm drainage ditches
 WorkStar Dump truck

In 1986, 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. In­ter­na­tional pro­duces a va­ri­ety of medium-duty, over-the-road, and se­vere-ser­vice trucks.

Pickups (XT-Series)
International CXT pickupMXT (2004–2008)
International MXT Wayco.caCXT
International MXT on dealer delivery trailerRXT
Medium Duty
International TerraStarInternational TerraStar Class 4-5 conventional
Ford LCF (and its International CF-CityStar counterpart)International CityStar LCF (low-cab forward) cab-over
International durastarInternational DuraStar Class 6-7 conventional
Class 8
2008-present International LoneStarInternational LoneStar conventional
2006-present International ProStarInternational ProStar+ conventional
International 9400i RedInternational 9000 Series conventional
2002-present International TranStar tractorInternational TranStar conventional
Severe-service
International PayStarInternational PayStar conventional
2008-present International WorkStarInternational WorkStar conventional

Navistar Defense

Pickup trucks
  • International SOTV-A
  • International SOTV-B
  • International MXT-MV
  • International MXT-MVU
MRAPs
Class 8
  • International ATX -6
  • International ATX -8
  • International 5000-MV
  • International 7000-MV

IC Bus

Further information: IC Bus and AmTran
IC BE school bus
 IC Bus BE-Series school bus

In­ter­na­tional has a long his­tory in the school bus in­dus­try as a chas­sis provider, dat­ing to when school buses first be­came mo­tor­ized. In 1991, 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 1933. Today, IC Bus pro­duces sev­eral mod­els of full-sized school buses along with buses for com­mer­cial use.

School/activity buses
Ford cutaway van chassis with a modular body Ambulance NY CityAE-Series cutaway-cab conventional (based on International TerraStar)
BE-Series conventional (International 3300LP chassis)
2005-present International 3300 HCS bus49CE-Series conventional (International 3300 chassis)
available in diesel-electric hybrid configuration
2007 International 3000-3900 IC RE 300 Of Fairfax County Public Schools Fairfax, VirginiaRE-Series rear-engine transit-style (International 3000 chassis)
Commercial buses

Along with com­mer­cial-use de­riv­a­tives of the school bus prod­uct lines, IC of­fers these dis­tinct products:

Motorcoaches

IC Bus has in­tro­duced con­cept ve­hi­cles in both 40 feet (12 m) and 45 feet (14 m) lengths.

International Harvester/Navistar diesel engines

In­ter­na­tional Truck and En­gine re­cently launched the “MaxxForce” brand name for its line of diesel en­gines. En­gines were re­branded as “MaxxForce” fol­lowed by a num­ber cor­re­spond­ing to the en­gine’s dis­place­ment, rounded up. So the 4.5L VT275 be­came the “MaxxForce 5. The Maxxforce Diesel en­gine line has re­cently been dis­con­tin­ued as a re­sult of Nav­is­tar In­ter­na­tional hav­ing many is­sues and re­ports of prob­lems with the en­gine. Ford con­tin­ued to use the Power Stroke brand name on their In­ter­na­tional-sourced en­gines. How­ever, the new 6.7L Power Stroke is not an In­ter­na­tional de­signed engine.

Joint ventures

Ford Motor Company

Since the 1980s, Nav­is­tar has had a close re­la­tion­ship with Ford Motor Com­pany. The re­la­tion­ship started out as an en­gine-shar­ing deal, but evolved into the pro­duc­tion of en­tire ve­hi­cles. How­ever, in May 2014, Ford cut Nav­is­tar out of the busi­ness of the F-650 and F-750 com­mer­cial trucks. Nav­is­tar had built them for Ford since 2001. Be­gin­ning in 2015, Ford plans to start mak­ing the trucks them­selves. It is ap­prox­i­mately a $400 mil­lion a year business.

 Ford F-650, a product of Blue Diamond Truck
Ford F-650, a product of Blue Diamond Truck

Ford PowerStroke diesel

As a re­sult of the gas crises of the 1970s, big-block gaso­line V8 en­gines (such as the Ford 460) had begun to fall out of favor with pickup-truck buy­ers. In the 1980s, diesel en­gines in Amer­i­can pickup trucks (in­tro­duced by Gen­eral Mo­tors in 1978) had be­come pop­u­lar, as they of­fered the power of a big-block V8 with the fuel econ­omy of a smaller en­gine. Ford en­tered into a sup­ply agree­ment with In­ter­na­tional Har­vester to re­ceive its 6.9 L IDI V8 en­gine. The first diesel-pow­ered Ford pickup trucks de­buted for 1982; it was avail­able for 3/4 and 1-ton mod­els. GM at the time had a De­troit Diesel V8 en­gine also on its debut, prior to that GM used a 350 Diesel. Dodge started using a Cum­mins six-cylin­der in 1988.

In 1994, when the In­ter­na­tional 7.3 L IDI V8 was re­placed by the T444E, the diesel op­tion was branded “Ford Pow­er­Stroke” to em­pha­size the switch to di­rect in­jec­tion. Through­out the 1990s and 2000s, Ford of­fered In­ter­na­tional/Nav­is­tar V8 (as the DT in­line-6 was far too large to pack­age in a pickup truck) in the2011 Ford Super Duty Ford F-250 XLTFord Super Duty pickup trucks.2004-15 F-750 Super Duty in use servicing a water pump

2004-15 F-750 Super Duty in use servicing a water pump

As of 2010, the 6.4 L Ford Pow­er­Stroke V8 was the last of the In­ter­na­tional/Nav­is­tar diesels used in Ford’s F-Se­ries Super Duty lineup. When Ford re­designed the Super Duty in 2011, it was fit­ted with a 6.7 L V8 de­signed and pro­duced by Ford.

Blue Diamond Truck

In 2001, Nav­is­tar formed a joint ven­ture with long­time (20 years) cus­tomer Ford Motor Com­pany to man­u­fac­ture medium-duty trucks and parts, in­clud­ing diesel en­gines for both par­ent com­pa­nies. The new com­pany, Blue Di­a­mond Truck Co. LLC, op­er­ates in the Nav­is­tar plant in Gen­eral Es­cobedo, Mex­ico. Its first prod­ucts were the2008 MHV Ford F650 01

2004 Ford F-650 and F-750 medium-duty trucks.

Anhui Jianghuai Navistar

On 16 Sep­tem­ber 2010, Anhui Jianghuai Au­to­mo­bile Co., Ltd. (JAC) an­nounced joint ven­tures with NC2 Global and Nav­is­tar In­ter­na­tional Cor­po­ra­tion that will de­velop, build, and mar­ket heavy duty trucks and diesel en­gines in China.

Mahindra Navistar

Main article: Mahindra Navistar

Nav­is­tar formed a joint ven­ture with Mahin­dra & Mahin­dra to build heavy trucks in India under the “Mahin­dra In­ter­na­tional” brand, which has since been re­named Mahin­dra Nav­is­tar. These trucks were dis­played at Auto Expo 2010 in Delhi, India.

The Joint Ven­ture ceased as Nav­is­tar ex­ited the joint ven­ture in 2013.

Tatra

Tatra and Nav­is­tar De­fence in­tro­duced at Eu­rosatory Ex­po­si­tion in Paris, France (June 14–18, 2010) the re­sults of their strate­gic al­liance since Oc­to­ber 2009, the mod­els ATX6 (uni­ver­sal con­tainer car­rier) and ATX8 (troop carrier) The ve­hi­cles ap­pear to be based on2010 Tatra T815 TERRno2Tatra T815-7 (T817) 6×6, 8×8 chassis, sus­pen­sion and cab­ins while using Nav­is­tar en­gines and other components. Under the deal Nav­is­tar De­fence and Tatra A.S. will mar­ket the ve­hi­cles in North Amer­ica, which in­cludes sales to the United States mil­i­tary and for­eign mil­i­tary sales fi­nanced by the United States gov­ern­ment. Tatra will source parts and com­po­nents through Nav­is­tar’s global parts and sup­port net­work for Tatra trucks de­liv­ered in mar­kets out­side of North Amer­ica, as well as mar­ket Nav­is­tar-Tatra ve­hi­cles around the world in their pri­mary markets.

Others

  • In 2005, Navistar purchased MWM International Motores, a Brazilian engine manufacturer formerly associated with Deutz AG.
  • Navistar International has a contract with Budget Truck Rental to produce their rental trucks.
  • Navistar entered into an agreement to purchase General Motors’ medium duty truck unit in 2007, but because of changing market conditions, the purchase was not concluded.

Plug-in electric vehicles

Modec FedEx truck, LA
 eStar electric van in Los Angeles in 2010. The vehicle was manufactured in the U.S. under license from Modec.
Coca Cola eStar electric truck at Washington D.C.
 eStar delivery truck in Washington. D.C. in 2012

Plug-in hybrid electric bus

The U.S. De­part­ment of the En­ergy an­nounced the se­lec­tion of Nav­is­tar Cor­po­ra­tion for a cost-shared award of up to US$10 mil­lion to de­velop, test, and de­ploy plug-in hy­brid elec­tric ve­hi­cle(PHEV) school buses. 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. To de­velop the PHEV school bus, Nav­is­tar will ex­am­ine a range of hy­brid ar­chi­tec­tures and eval­u­ate ad­vanced en­ergy stor­age de­vices, with the goal of de­vel­op­ing a ve­hi­cle with a 40-mile (64 km) range. 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.

eStar electric van

The eStar is an all-elec­tric van man­u­fac­tured in Wakarusa, In­di­ana. Pro­duc­tion began in March 2010 and first de­liv­er­ies began two months later. The tech­nol­ogy used in eStar was li­censed to Nav­is­tar in 2009 in a joint ven­ture with Modec and Nav­is­tar bought the in­tel­lec­tual prop­erty rights from the Modec’s bank­ruptcy ad­min­is­tra­tors in 2011. The in­tro­duc­tion of the eStar was sup­ported by a US$39.2 mil­lion U.S. De­part­ment of En­ergy stim­u­lus grant under the 2009 Amer­i­can Re­cov­ery and Rein­vest­ment Act.

The eStar has a 5,100 lb (2,300 kg) pay­load ca­pac­ity and is avail­able with a 14- or 16-foot cargo box. The ve­hi­cle is pow­ered by a 70 kW 102 hp elec­tric motor pow­ered by an 80kWhr lithium-ion bat­tery pack sup­plied by A123 Sys­tems, and also uses re­gen­er­a­tive brak­ing. The elec­tric van has a range of 100 mi (160 km), and a full charge takes be­tween 6 and 8 hours. By May 2010 the eStar had re­ceived U.S. En­vi­ron­men­tal Pro­tec­tion Agency (EPA) and CARB cer­ti­fi­ca­tions. The eStar also meets all Fed­eral Motor Ve­hi­cle Safety Stan­dards (FMVSS).

The first vans were de­liv­ered in May 2010 to FedEx Ex­press for use in Los Angeles. Other cus­tomers in­clude Pa­cific Gas and Elec­tric Com­pany (PG&E), The Coca-Cola Com­pany, and Canada Post. The eStar has a price of US$150,000.

Criticism

In De­cem­ber 2011, the non­par­ti­san or­ga­ni­za­tion Pub­lic Cam­paign crit­i­cized Nav­is­tar In­ter­na­tional for spend­ing $6.31 mil­lion on lob­by­ingand not pay­ing any taxes dur­ing 2008-2010, in­stead get­ting $18 mil­lion in tax re­bates, de­spite mak­ing a profit of $896 mil­lion and in­creas­ing ex­ec­u­tive pay by 81%. On Jan 31, 2005, Nav­is­tar Fi­nan­cial said it would re­state fi­nan­cial state­ments for fis­cal years 2002 and 2003 and the first three quar­ters of fis­cal 2004, be­cause it did not take into con­sid­er­a­tion po­ten­tial changes to fu­ture in­come. On April 7, 2006, Nav­is­tar re­stated fi­nan­cial re­sults from 2002 through 2004, and for the first three quar­ters of 2005, due to ac­count­ing prac­tices that are the sub­ject of a con­tin­u­ing review.

Images

Navistar International Vehicles

International LoneStar

2010 International LoneStarTractor Trailer

Inter-latrun-exhibition-1

IDF Custom International.

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IC Bus CE300 school bus

2008-11-11 Unloading dumspter from a truck

International DuraStar medium-duty truck

2016-Straszenszenen-Mexico-RalfR-WMA 1084

International 4700 SCD

1908 International highwheel pickup1909 Russian International Harvester Advertising Poster1910 International Harvester vehicle Long Lake Regional Park New Brighton Minnesota Mile 118.51911 IHC Mogul tractor1911 International Harvester Auto Wagon1911 International J30 Touring1912 international highwheel Peddlerswagon1912 StudBus1913 International Harvester Cars Autocar1913 International MW. It is powered by a two cylinder engine rearside1913 International MW. It is powered by a two cylinder engine1916 International Model H Truck1917 International Motor Truck Advertising Poster1917 Model F International Motor Truck1917 Model H International Motor Truck1918 international 2-ton1918 International Fire Truck Advertising Card1920 International Harvester tractor1920 Triumph Medium Weight Truck1920-01 International Truck Calendar1920's McCormick Deering Tractor, 13-33 Model E1921 International-Harvester-six-speed-spezial1922 Ford Model T kid hack bus1922 IHC Saving the World From Starvation Advertisement1923 International Municipal Service Truck Catalog1923 International Red Baby Truck Advertising Poster1923 Red Baby Truck Cartoon1924 International Harvester Repair Service Advertising Poster1924 International Motor Truck Advertising Poster1924 International Motor Trucks Advertising Poster1924 International Truck Advertising Poster1924 Model S for today's Throw-Back Thursday! It featured a 4-cylinder, block cast engine and sliding gear1925 Here's a Good Plan That Succeeds1925 Model S International truck owned by Zieglers Furniture Store1926 IH brochure1926 International Harvester Toy Trucks1926 International Transit THUNDER BAY1927 international 4cyl1927 international 541927 International Harvester toys produced by Arcade Toys1927 international S24 4cyl1927 International stakebed1928 international 1ton 6speed Special1928 International Model 15 with body by Moore1928 International Speed Six Truck1928 international truckdumpbed1928 International Trucks Advertising Poster (Brazil)1929 Deering Farm Equipment and International Truck Advertising Poster1929 International Motor Truck Advertising Poster1929 International Six-Speed Special Truck Advertising Poster1929 International Truck Advertising Poster (Argentina)1929 International Trucks Advertising Poster (Africa and India)1930 Advertisement for International fire-rescue trucks featuring the National Air Races held at Curtiss-Reynolds Airport in Chicago1930 international 6spd1930 International Model A-5 Poster1930 International Model AW-1 Truck Advertising Poster1930 International Six-Speed Special Truck Advertising Poster1930 International SSS Special 1ton6spd4cylflathead3spdtrans2spdrear1930-45 IH dealer in Texas, showing trucks, tractors and refrigeration equipment N.P. Hurst Motor Co. IH1931 International Hainje Heerenveen B-48881931 International o1931 International Truck Advertising Poster1931 McCormick-Deering Corn Sheller and Feed Grinder Poster1932 International A-2 Truck Advertisement1932 International Bread Truck1932 International Harvester Bakeries Poster1932 International Harvester Bottling Truck Poster1932 International Harvester Cordoba-Cruz DE1932 International tractor with sleeper hauling for Golden Age Beer1932 International Trucks for Construction Industry1932 International Trucks Poster1932-1956 international 11932-1956 international 41932-1956 international 51932-1956 international 61932-1956 international 71932-1956 international 81932-1956 international 91932-1956 international 101932-1956 international 111932-1956 international 121932-1956 international 131932-1956 international 141932-1956 international 15

1932-1956 international 161932-1956 international 171932-1956 international 181932-1956 international 191932-1956 international 201932-1956 international 211932-1956 international 221932-1956 international 231932-1956 international 241932-1956 international 251932-1956 international 261932-1956 international 271932-1956 international 281932-1956 international 291932-1956 international 301932-1956 international 311932-1956 international 321932-1956 international 331932-1956 international 341932-1956 international 351932-1956 international 361932-1956 international 371932-1956 international 381932-1956 international 391932-1956 international 401932-1956 international 411932-1956 international 421932-1956 international 431932-1956 international 441932-1956 international 451932-1956 international 461932-1956 international 471932-1956 international 481932-1956 international 491932-1956 international 501932-1956 international 511932-1956 international 521932-1956 international 531932-1956 international 541932-1956 international 551932-1956 international 561933 international 1ton 6cyl1933 International D-1 Trucks Advertising Poster1933 international D1truckbuiltbyWillys1933 Wardbuslogo1934 international 19341935 international 1.1,2ton1935 international 6cyl paddy wagon 41935 International C-1 truck owned by Elsner's Blue Ribbon Bakery1935 International Harvester and Packard1935 International late 6cyl armoured by John C Dix Companyfor Federal Reserve Bank built in MemphisTN WNL1935 International Lawrie ModelCs1935 International Truck Advertisement1935 International Truck Advertising Poster1935 International1935 South African International C-35-CS-35 Truck Brochure1936 international 1936 c1_taxi_norway1936 International C-1 Truck Brochure1936 International C-15 Truck Brochure1936 international C301936 International C-35 B and CS-35-B Bus Flyer1936 International C-40 and CS-40 Ad Flyer1936 International C-300 Truck Brochure1936 International dumptruck1936 International Trucks Ad Proof1937 brochure for heating and defrosting systems used in International trucks1937 international ambulance 19371937 international D21937 International Harvester cab-over-engine (COE) tow truck parked in front of Miller Motors dealership.1937 international harvester-d-21937 International Trail Magazine Cover1937 International Truck Ad Proof1937 McCormick-Deering tractor1937 Two specially designed International trucks connected with an awning at an African camp site1937-40 International milk delivery truck owned by Carnation Milk1938 I H Superior1938 international 6cyl deluxe paneltruck1938 International Builds Trucks for Every Class of Hauling1938 International Carr. Buca Born.1938 International D-40 Truck Brochure1938 International Harvester Ad1938 International Harvester D Series Panel Van1938 International Harvester D-DS-30, D-DS-35, D1938 International Industrial Power Advertising Poster1938 International model D-400, Coca Cola1938 International Trail Magazine Cover of Gatti Expedition1938 International Trail Magazine Cover1938 International Truck Advertising Poster a1938 International Truck Advertising Poster1938 International Trucks Advertisement1938-1975 Preserved International Harvester Metro Van in Portland in 20121939 dodge school bus1939 International Air Mail Delivery Truck Advertising Poster1939 International België1939 International D-301939 International D-300 delivery trucks owned by Golden Age Beer1939 International Harvester carr. Renkema Middelstum B-225141939 International harvester rapid ihc1939 International Harvester woodie wagon 19391939 International Jungle Yacht Truck, Commander Gatti1939 International Models D-500 and DR-700 Trucks1939 International Woodies1939 International-d-series-sedan1939IH1940 international 1940 d-2 woody sw1940 International D-400 Truck Advertising Poster1940 International De Luxe Delivery Truck Advertising Poster1940 International D-Line Truck Advertising Poster1940 International Harvester, D5 Panel Van, 'Weddell's Bread', Aberdeen Street, Geelong1940 International madel D-300, owned by Richfield Petroleum1940 International METRO Delivery Trucks1940 International model D International owned by Standard Oil1940 International model D-151940 International Model D-40 and DS-40 Trucks1940 International Panel Truck At Airport1940 International Tanker Truck ad1940 International Woodie Station Wagon1940 International-police-wagon 19401940 Prospector for International Harvester Dealers1940 SchoolBus1941 IH Models K-8, K-10, and K-11 Trucks1941 International Harvester K-5 Wayne1941 International Harvester Truck Advertising Proof1941 International Harvester woodie wagon1941 International Harvester, D2 Station Wagon1941 International Harvester, D30 Motor Buses, City Road, South Melbourne1941 International Harvester, Reo Speed Wagon Bus,11941 international KandFruehauftrailer1941 International K-Line Truck Advertising Poster1941 International K-Line Truck Advertising Proof a1941 International K-Line Truck Advertising Proof b1941 International K-Line Truck Advertising Proof1941 International Modelos K-6, KS-6, K-7 and KS-7 Trucks1941 International Truck Advertising Proof a1941 International Truck Advertising Proof ad1941 International Truck Advertising Proof b1941 International Truck Advertising Proof1942 international 6cyl4spd1942 International Harvester Ambulances1942 International Harvester Maintenance Battalion Poster1942 International K6flatbed1942 International1943 Both Working for Victory1943 International Harvester D series1943 International Trucks Alaska Highway Ad1944 Everything Changed But The Paint1944 International (2)1944 International hc m2-41944 International semi-truck (tractor-trailer) on a road with a hazy view of a bridge1944 International Truck on the Ohio River Boulevard1944 International Truck Operated by Mistletoe Express Service, Inc1944 International1945 International M-5H63611945 International Model K-8-F Truck1945 International

1946 International Product Advertising Proof1946 International Truck Advertising Poster a1946 International Truck Advertising Poster1946 International Truck Advertising Proof Logging1946 International Truck Advertising Proof1946 International West Coast Model Truck1947 International Harvester, K Line Station Wagon1947 International HFA1947 International KB and KBR Truck Advertising Proof1947 International KBR-11 Truck Advertising Proof1947 International Model KB-10 Trucks1947 International Truck Advertising Proof a1947 International Truck Advertising Proof ad1947 International Truck Advertising Proof b1947 International Truck Advertising Proof1947 International Trucks Gatti-Hallicrafter's Expedition to Africa1947 International-kb-2-pickup1947 New International Harvester Logo Advertising Poster1947-52 International carr. Verheul NB-28-271948 International Harvester Dittmar1948 International KB-1-M and KB-3-M Metro Delivery Trucks1948 International KB-8 school bus1948 International KB-81948 International KB-8-1 Truck Advertising Proof1948 International Metro Advertising Proof a1948 International Metro Advertising Proof1948 International Model KB-2 Trucks1948 International Panel van1948 International Products Advertising Proof1948 International Tractor-Trailer & Diesel Crawler Tractor1948 International Truck Advertising Proof ad1948 International Truck Advertising Proof1948 REOschoolbus1949 International Harvester Company's annual report1949 INTERNATIONAL Harvester et Half-Track1949 International Harvester RDC 4051949 International Harvester W1949 International Heavy Duty Truck Advertising Proof1949 International K -2 Special Coach Truck and Airplane1949 International KB-81949 International L-120 Truck with Pickup Body1949 International L-120, L-110, and L-130 Trucks1949 International L-130 Truck with Stake Body1949 International L-160 Truck with Platform Body1949 International Metro Advertising Proof1949 International Model KB-5 Trucks1949 International Model KB-8 Trucks1949 International Truck Advertising Proof a1949 International Truck Advertising Proof ad1949 International Truck Advertising Proof Featuring Commander Gatti1949 International trucks promoting United States government bonds1949 International W-301949 International W-3042-L Truck-Van, Closed Top with Semi-Trailer1949 International-metro-kb1m1949 Internationals Harvester s at work1949 International-Visdalsruten1949-52 International carrosserie Hoogeveen NB-67-751950 Blue Bird1950 International Engine Advertising Proof a1950 International Engine Advertising Proof1950 International Gardner Wood 500-5001950 International Harvester ACO `90 Sightliner V-8 gas1950 international harvester bus a1950 International Harvester Bus1950 International Harvester L series1950 International L and LF Truck Advertising Proof1950 International L-110 Panel Truck1950 International L-120 truck loaded with milk cans1950 International L-120 truck, W-4 tractor and grain drill1950 International L-160 Truck Delivering Chickens1950 International L-160 truck owned by the S.L. Daniel Furniture and Mattress Factory1950 International LB-110 Truck1950 International Metro and dump Truck Advertising Proof1950 International Metro Trans delivery truck for Thalimers' Department Store1950 International Truck Advertising Proof - Metro1950 International Truck Advertising Proof a1950 International Truck Advertising Proof ad1950 International Truck Advertising Proof with Truck Driver and Boy1950 International Truck Advertising Proof1950 International Truck Driver Talking with a Boy on a Bike1950 International truck filled with firewood1950 International Truck Hauling Corn Cobs1950 International truck loaded with sacks1950 Loading Bales of Hay from International L-Series Truck1950 Loading Eggs into International L-120 Pickup Truck1950 Loading trees into an International L-120 truck1950 Planting trees out of an International L-120 truck1950 Two men loading bags into a International L-120 truck1950's International Haukes1951 ECF-International Harvester1951 International Half Ton Pickup Truck Advertising Poster1951 International Harvester L1101951 International Harvester ICHBus21951 International Harvester L160 ECF1951 International Harvester Touringcar L160 ECF Matser 231951 International Harvester Touringcar L160 ECF Matser 23a1951 International Harvester Truck with Pumpkins1951 International L-110 Truck (115-Inch W.B.)1951 International LD-400 Series Truck and Trailer1951 International Truck Advertising Poster ad1951 International Truck Advertising Poster1951 International Truck Advertising Proof1951 International1951+1953 International Harvester Sightliner and DCO1952 International C-254 Cultivator on Super C Tractor1952 International harvester Company Military Construction Equipment Transport1952 International Harvester Company of Australia Pty. Ltd1952 International M-40 Marine Corps Vehicle with Wrecker Body1952 international M-40 Truck on Hillside1952 International M-41 and M-54 Cargo Vehicles1952 International M-51 Dump Truck at Fort Hood1952 International M-61 to spread asphalt at Wolters Air Force Base1952 International M-62 Wrecker Moving Truck1952 International M-62 Wrecker1952 international M-139 Transporting Bridge-Building Unit1952 International M-246 Wrecker with Jet Fighter Wreckage1952 International Model M-51 Dump Truck1952 International R-110 Panel Truck1952 International R-110 Truck with Pickup Body1952 International Truck Advertising Proof1952 Man Using Super C Tractor with Cultivator1952 Retro Vintage Kitsch 50s School Kid Red School Bus1953 American-Indian Youth Fathered Around International truck1953 IHC R-205 Sleeper Cab Truck and Farmall Super M Tractor1953 International Harvester D11001953 International Harvester R-195 semi-truck outfitted with a Space Saver cab1953 International Harvester standard model R-110 truck with a pickup body and ADA-RAK travels down a wooded roa1953 International Harvester Travelall 4x4 2149 AC1953 international L-120 Truck1953 International Model R-120 truck1953 International Model RP-195 roadliner truck with attached trailmobile oil tanker.1953 International R110 pickup1953 International R-110 Station Wagon1953 International R-120 Truck at Nursery1953 International R-120 truck with a stake body1953 International R-150 Truck with Van Body1953 International R-165 Roadliner1953 International R-170 stake-body truck1953 International R-170 Truck with Ladder1953 International R-183 School Bus1953 International R-195 And R-120 Trucks1953 International R-195 truck outfitted with a semi-trailer tank body1953 International RA-140 milk delivery truck1953 International RBA-140 Milk Delivery Truck

1953 International Roadliner Oil Tanker1953 International Truck Advertising Proof1953 International Utility1954 IHC red tractor McCormick Farmall1954 International garbage collection truck parked beside a restaurant1954 International Harvester Farmall Super C1954 International KB7 semi-trailer coach1954 International R110 Front End1954 International R110 Truck1954 International R-160 Truck1954 International RA-140 Stand & Drive a1954 International RA-140 Stand & Drive b1954 McCormick No. 141 harvester-thresher (combine) and an International truck1955 Golden Book with International Trucks1955 International Cab Overs1955 International Harvester DC-405-L PIE1955 International Model SM Mounting Metro-Van1955 International R190 with integrated sleeper1955 International R-400 Series trucks1955 International R-Series trucks1955 International S-110 Light Duty Pickup Truck1955 International S-Line Light-Duty Trucks1955 International S-line Medium-Duty Trucks1955 International trucks coastguard1955 Kenworth-Pacific T-126 school bus1956 international A-100 pickup from local gun-car show1956 International DC-4051956 International KS6 Coach1956 International Metro Pepsi Delivery Truck1956 International Model R-202 Oil Field Truck1956 International model RF-190 oil field truck1956 International pickup1956 International Tractors and Truck1956 International Truck Advertising Proof a1956 International Truck Advertising Proof ad1956 International Truck Advertising Proof1956 International V-line COE Heavy-Duty Trucks1956 Workers service oil field equipment International model RDF-192 Truck1957 International A 100 Golden Jubilee Truck1957 International A-100 Truck Postcard1957 International A-110 Truck Postcard1957 International A-120 4x4 Truck Postcard1957 International A-120 Truck Postcard a1957 International A-120 Truck Postcard1957 International A-130 Truck Postcard1957 International A-150 Truck Postcard1957 International A-160 Truck Postcard a1957 International A-160 Truck Postcard1957 International A-180 Truck Postcard a1957 International A-180 Truck Postcard1957 International golden jubilee custom pickup1957 International H 6x6 Rotterdam1957 International Sightliner Trucks1957 International ХМ409, 8x81958 International R-195 Truck-Tilt Cab with Closed Top Van Body1959 International CO Line1959 International DCO1959 International Fire Truck Brochure1959 International Harvester RDC sleeper1959 International Harvester Sightliner 591959 International Heavy-Duty Trucks1959 International Medium and Heavy-Duty Trucks1959 International Medium-Duty Trucks1959 International Truck and Cofferdam1960 International Harvester Travelall & pickup 601960 International Light-Duty Trucks1960 International Truck Advertising Proof1960 International Trucks with Metroette Dari-Van Bodies1960 Universal Engineer Tractor a1960 Universal Engineer Tractor1961 IHC Scout adv1961 International C-line Travelall Station Wagon

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1961 International Harvester DCOF-404's 250 HP Rolls Royce diesels1961 International Harvester Metro Van1961 International Harvester Travelall1961 International RD-4051961 International Scout 801961 international scout1961 international-englebert1961 Meet the International Scout for all roads, all weather, all uses !!1961+1962 International Light-Duty C-Line Trucks1961–1962 IHC C-120 Travelette1962 1803 Schoolmaster included an International V-345, 8-cylinder, gasoline engine1962 Int Harv product line1962 international 1962 scout1962 International dump truck1962 International Harvester DCOF405 tractor with a day cab1962 International Harvester DCOF405 tractor with a sleeper cab1962 International Loadstar 1600 with Flatbed1962 International Mk-II, 4x41962 International model V220 truck1962 International Scout Diesel Nameplate1962 International Travelall 10001962 International truck1962 International Trucks with Metro Bodies1962-65 International Harvester Scout 80 with the roll-down windows