LISLE, Ill. — Navistar International announced it will move production of its medium-duty engines from its Huntsville, Alabama plant to Melrose Park, Ill.
It will continue building its 13-litre engine in Huntsville.
The move is designed to consolidate mid-range engine production as part of its ongoing turnaround efforts.
“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.”
The move is expected to save Navistar about $22 million per year.
“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.”