Navistar steps up reliance on Cummins engines

| Monday, March 17, 2014

Commercial truck maker Navistar International Corp. will close an engine plant in Alabama this summer as it moves to eliminate excess production capacity and consolidate its engine lineup for medium-size trucks.

According the Wall Street Journal, the closure of the plant in Huntsville will result in the loss of about 280 jobs and generate savings of about $22 million a year. Production at that plant will be shifted to an engine plant near Chicago, which will add about 75 workers.

Navistar will continue to produce large diesel engines for heavy-duty trucks at a second plant in Huntsville. WSJ reports that the move reflects an increasing reliance on engines made by Cummins Inc. Navistar recently began offering Cummins’s engines in its medium-size trucks and had earlier decided to buy 15-liter engines from Cummins for heavy-duty trucks.

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