In another step in what the company calls its turnaround efforts, Navistar announced this week it will be consolidating manufacturing of some of its engines by shifting production of its mid-range engine from Huntsville, Ala., to Melrose Park, Ill.
The company will continue to build its 13-liter engine at the Huntsville plant, though 280 jobs will be cut at the Huntsville plant. Navistar says the move will save it $22 million a year.
“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,” Jack Allen, Navistar chief operating officer, 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.”
“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.”