By Charlie Morasch, Land Line contributing writer | Tuesday, August 28, 2012
In recent weeks, mega-truck manufacturer Navistar has made clear it is turning the page and heading toward a new future.
On Monday, Aug. 27, the $14 billion revenue company announced it won’t be embarking on its new future under the leadership of Daniel Ustian.
Ustian, who Navistar said Monday “has informed the board that he is retiring,” was characterized in several media reports as being “ousted” by the Navistar board of directors from his role as chairman, president and chief executive officer.
Ustian had been blamed by stock analysts and in many business media reports for Navistar’s former plan to stick with Exhaust Gas Recirculation for emissions after-treatment to meet 2007 and 2010 emissions mandates. When the company admitted it couldn’t meet the 2010 standard this summer, it decided to combine EGR with the Selective Catalytic Reduction method that uses urea-based fluid and that had been favored by all Navistar’s rivals.
The Navistar Board of Directors appointed Lewis Campbell, 66, former chairman, president and CEO of Textron Inc., as Navistar’s Interim CEO and Executive Chairman of the Navistar Board of Directors. Campbell also spent 24 years at General Motors, and holds a B.S. in mechanical engineering from Duke University.
The Board also promoted Troy Clarke to the position of president and chief operating officer of Navistar. Clarke, 57, previously served as Navistar’s president of truck and engine operations. Clarke spent more than 35 years at GM before joining Navistar in 2010. He holds a B.S. in mechanical engineering from General Motors Institute and an M.B.A. from the University of Michigan.
“Our board and management are aligned around a clear path forward, and we are confident that under the leadership of Lewis and Troy, Navistar will make continuing progress in executing its near-term strategic priorities, driving growth and creating shareholder value,” said Michael Hammes, Navistar’s independent lead director, according to a company news release.
“We appreciate Dan’s many contributions and accomplishments during his 37-year career at Navistar. Under his leaderhip, Navistar’s revenue grew from approximately $7.7 billion to approximately $14 billion as the company significantly expanded its global reach and diversified its product portfolio, including the addition of Navistar’s military business. We thank Dan for his dedicated service and wish him all the best in the future,” said Hammes.
Campbell said Navistar will conduct a search for a long-term CEO both internally and externally “at the appropriate time” according to the release.
To read more coverage of Navistar’s change in direction, click here.
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