Navistar is moving its mid-range engine manufacturing operations from Huntsville, Ala., to its Melrose Park plant outside of Chicago, where the MaxxForce engine line is produced. The company cited the consolidation as the "important next step" in increasing production efficiencies and driving down costs during a company turnaround.
"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's chief operating officer. "The consolidation will further lower the company's break-even point, strengthen our competitiveness in the marketplace and help position Navistar for a return to profitability."
The move will eliminate approximately 280 plant jobs but will reduce Navistar's operating costs by about $22 million, a company statement added. The Huntsville plant will continue to manufacturer Navistar's big-bore, 13-liter diesel engine. The consolidation of the mid-range engines to Melrose Park is expected to be completed later this summer.
"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 added. "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."
The MaxxForce 7 and MaxxForce DT are used in IC Bus models. The Melrose Park plant also manufactures the MaxxForce 9, MaxxForce 10, MaxxForce 11 and MaxxForce 13. The different MaxxForce configurations power everything from Class 3-8 trucks to motorcoaches, fire trucks and emergency vehicles to material-handling vehicles.