Navistar Chairman Pays the Price

August 27, 2012

Navistar Chief Executive Dan Ustian is retiring immediately, on the heels of the company's second quarter loss of $172 million and a long-term gamble on technology that didn't meet 2010 emissions standards.

The Chicago Tribune reports that investors' call for a new leader reached a crescendo this month, when Navistar said it had made a deal to buy engines from a competitor to meet 2010 standards. The company also disclosed it is the target of a Securities and Exchange Commission investigation "related to certain accounting and disclosure matters."

Navistar named Lewis Campbell, 66, interim chief executive. Campbell is a former chief executive at Texron, and also spent 24 years at General Motors.