Navistar International is to move mid-range engine production at its Huntsville, Alabama, plant to Melrose Park, Illinois, leading to the loss of 280 jobs.
Navistar will continue to build its 13L engine at the Huntsville, big bore engine plant.
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“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 Navistar COO, Jack Allen.
“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.”
Once completed later this summer, the move is expected to cut around 280 jobs at Huntsville and reduce Navistar’s operating costs by around US$22m 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,” said Allen.
“We understand these decisions have an impact on our employees and the community and we will treat our people with dignity and respect throughout this process.”
