What is in this article?:
- Navistar to Study Engine Plant Consolidation
- Technology switch
- CEO targeting “underutilized capacity”
- NOx emissions control driving changes
Truck and diesel engine builder Navistar International is considering how to reduce its operating costs, and consolidating its engine production capacity may be one option. According to various reports, the company’s chief operating officer and future CEO Troy Clarke indicated such a strategy recently in comments at the Mid-America Trucking Show, in Louisville, Ky.
"We build engines in three places and none of them is fully utilized,” Clarke reportedly explained. “You just can't make any money doing that. Underutilized manufacturing capacity is just a cost, and it is a cost that we don't have to bear."
Navistar also operates two metalcasting operations: the foundries at Indianapolis and Waukesha, WI, produce gray and ductile iron and CGI castings for the group’s diesel engine products, but there has been no indication of capacity excess in those operations.
No specific plans for downsizing have been concluded, and no final plans would be expected for several months to come.
Navistar has been looking for cost-cutting opportunities over the past year, in order to stabilize its financial status as it works to make its diesel engine products compliant with U.S. Environmental Protection Agency standards for NOx emissions. The company reported losses of about $3 billion for 2012.