Navistar International Corporation will consolidate its mid-range engine manufacturing, moving Huntsville, Ala., production to Melrose Park, Ill, eliminating approximately 280 jobs. The company will continue to produce its 13-liter engine at the 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," said Jack Allen, Navistar chief operating officer. "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."
Once completed later this summer, the move is expected to reduce Navistar's operating costs by about $22 million annually.
"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."