International Motors
| Company type | Subsidiary |
|---|---|
| Industry | Commercial vehicles and engines manufacturing |
| Predecessor | International Harvester |
| Founded | 1986 |
| Headquarters | Lisle, Illinois , United States |
Area served | Worldwide (United States, Canada, Brazil, Mexico, and over 90 other countries) |
| Products | Commercial trucks (Class 4 to Class 8), buses (IC Bus) |
| Owner | Traton (Volkswagen Group) |
Number of employees | 14,500 (2024) |
| Parent | Traton |
International Motors, LLC—previously known as Navistar International Corporation—is a U.S.-based manufacturer specializing in commercial vehicles and engines. Established in 1986 as the successor to International Harvester, the company produces trucks under its own brand and manufactures buses marketed under the IC Bus name. Since July 2021, it has been a subsidiary of Traton, the heavy-duty vehicle division within the Volkswagen Group.
Located in Lisle, Illinois, International Motors had a global workforce of approximately 14,500 employees as of 2024. The company maintains an extensive sales and service network, with nearly 1,000 dealerships across the United States, Canada, Brazil, and Mexico, as well as over 60 dealers serving 90 other countries. Its product range includes commercial trucks from medium-duty Class 4 models up to heavy-duty Class 8 vehicles.
1902–1985: International Harvester
International Harvester (IH) was created in 1902 through the consolidation of McCormick Harvesting Machine Company and Deering Harvester Company. Over time, IH diversified its manufacturing portfolio to include agricultural equipment, consumer trucks, and heavy commercial vehicles. Notable products comprised the Farmall tractor series, Cub Cadet lawn care machines, and SUVs like the International Scout and International Travelall. IH's truck offerings spanned from light-duty Light Line models to robust heavy-duty trucks, cementing its leadership in agricultural and construction machinery sectors.
During the 1980s, financial difficulties stemming from a downturn in agriculture and labor strikes between 1979 and 1980 prompted a corporate restructuring led by CEO Louis W. Menk and president Donald Lennox. IH divested several units: its Construction Equipment division was sold to Dresser Industries; Solar Turbines went to Caterpillar; and Cub Cadet was transferred to MTD Products. Beginning in 1983, Navistar entered into a supply agreement with Ford that provided diesel engines for Ford's truck lineup until 2010.
In 1985, IH sold its Agricultural Division to Tenneco, which merged it into Case Corporation to create Case IH. The remaining truck and engine segments rebranded as Navistar International Corporation in 1986 and introduced a new orange-red diamond emblem. The name Navistar combined “Navi-” (navigation) with “Star” (referring to its truck series), reflecting a strategic emphasis on commercial truck and engine manufacturing.
Navistar introduced the 8300 model in 1987 as part of its Thousand Series trucks lineup, which included Class 7/8 tractors alongside medium-duty 4000-series trucks launched in 1989. These vehicles featured aerodynamic styling and integrated lighting aimed at enhancing fuel economy. Following 1986, Navistar focused exclusively on diesel-powered vehicles to strengthen its position within the commercial trucking sector.
1990s
In 1990, International unveiled the aerodynamic Class 8 model 9400 truck with a set-back front axle allowing for an extended hood design; meanwhile, the traditional-style 9300 remained available. In 1991, Navistar exited the automotive sector by divesting the Scout and Light Truck parts business. That year also saw Navistar acquire a one-third ownership interest in American Transportation Corporation (AmTran), a manufacturer specializing in school buses.
Leveraging its longstanding role as a chassis supplier, Navistar expanded its presence in the school bus market by fully acquiring AmTran in 1995. The following year, the IDI diesel engine was replaced by the T444E V8 diesel engine featuring direct injection and turbocharging; this powerplant became Ford’s PowerStroke diesel engine line. By 1998, reduced demand for cab-over-engine trucks led to discontinuation of the North American production of the 9800 model and relocation of manufacturing operations to Brazil.
2000s
In 2000, Navistar shifted its corporate headquarters from Chicago to Warrenville, Illinois. The 5000 and 9000-series trucks underwent redesigns, emerging as the 5000i and 9000i models. By 2001, the "NGV" series had replaced the Thousand-Series lineup. The S-Series remained in production through 2003–2004, primarily serving severe-service and bus chassis markets. Additionally, in 2002, AmTran was renamed IC Bus.
Navistar made a return to the consumer truck market in 2004 with the launch of its International XT pickup range—comprising the CXT, RXT, and MXT models—which were notable for being the largest consumer trucks available, featuring record-breaking height and length. The company introduced the ProStar long-haul tractor in 2006 as a successor to the 9400i and discontinued the "Thousand-Series" brand. By 2008, the DuraStar and WorkStar models had replaced older series vehicles, while the TranStar name was revived for regional-haul tractors. Production of all XT models ceased after 2008.
In 2005, Navistar expanded into the delivery van sector by acquiring Workhorse Custom Chassis. Although Workhorse briefly manufactured the MetroStar chassis-body, operations ceased in 2012 due to cost reduction efforts. Subsequently, its assets were acquired by AMP Electric Vehicles in 2013, which later rebranded as Workhorse Group Inc. in 2015.
2010s
In 2010, Navistar announced plans to move its headquarters from Warrenville to Lisle, Illinois, a project expected to generate 3,000 permanent jobs and 400 construction positions. This $110 million campus development received $65 million in state incentives. By 2015, Navistar closed its Truck Development and Technology Center in Fort Wayne, Indiana, resulting in either relocation or departure for approximately 300 employees.
In June 2012, hedge fund MHR Fund Management acquired a 13.6% ownership stake in Navistar, prompting the company to adopt a poison pill strategy to prevent hostile takeovers. During this period, Navistar transitioned to using Cummins engines equipped with Selective Catalytic Reduction (SCR) technology. President Dan Ustian stepped down amid pressure from activist investor Carl Icahn, who criticized management performance. Between 2012 and 2013, several top executives also left the company.
Navistar implemented substantial workforce reductions and plant closures: in August 2012, it cut 500 jobs; in September of that year, another 200 positions were eliminated; and in 2013, the Garland, Texas facility was shuttered, resulting in a loss of 900 jobs. Additional workforce reductions continued through 2014 as part of ongoing cost-saving initiatives.
During 2013, Navistar lowered its SG&A expenses by 16% and trimmed product development budgets by 24%, divesting non-essential businesses such as its RV division and Workhorse Chassis unit. In 2014, engine manufacturing was relocated from Huntsville, Alabama to Melrose Park, Illinois, which led to a reduction of about 280 jobs.
In 2014, Navistar entered into a collaboration with General Motors to co-develop medium-duty trucks leveraging combined expertise; production commenced at Navistar’s Springfield, Ohio facility in 2018.
By 2016, Navistar established a strategic partnership with Volkswagen Group’s commercial vehicle unit, Traton SE, which acquired a 16.6% equity stake for $256 million. This alliance aimed to strengthen technological innovation and procurement capabilities.
2020s
On January 30, 2020, Traton announced its intention to purchase all remaining shares of Navistar. In April 2021, Brazil's Administrative Council for Economic Defense (CADE) initiated an evaluation of the merger, consulting with 35 companies. The acquisition was completed on July 1, 2021, resulting in Navistar becoming a subsidiary of Traton and adopting the name Navistar, Inc.
On July 15, 2020, Navistar entered into a collaboration with autonomous trucking company TuSimple to co-develop Level-4 autonomous semi-trucks, aiming for production by 2024. As part of this strategic partnership, Navistar acquired a minority equity interest in TuSimple.
On September 25, 2024, Navistar revealed plans to rebrand as International Motors, LLC, effective from October 1, 2024, along with the introduction of a new logo and refreshed corporate branding.
International Trucks (1986–present)
After International Harvester transitioned into Navistar International in 1986, the Truck and Engine Division continued utilizing the International brand name. Ranking as the third-largest manufacturer of Class 8 trucks behind Freightliner and Paccar brands, International commanded a 12.6% share of the U.S. market in 2022.
The International Trucks portfolio includes vehicles ranging from medium-duty Class 4 to heavy-duty Class 8 models, catering to a wide array of commercial needs.
Current products
| Vehicle name | Production | Classification | Configuration | Notes |
|---|---|---|---|---|
| International CV | 2019–present | Class 4–5 | Light/Medium duty straight truck | Succeeded International TerraStar. Manufactured alongside Chevrolet Silverado 4500-6500 HD. |
| International MV | 2019–present | Class 6–7 | Medium duty straight truck | Replaced International Durastar. Updated model launched for 2022. |
| International RH | 2018–present | Class 8 | Regional-haul semitractor | Took over from International TranStar. Shares body design with LT model (excluding aerodynamic features). |
| International LT | 2017–present | Class 8 | Over-the-road semitractor | Succeeded International ProStar. First model with two-letter designation featuring second-generation NGV cab. |
| International HV | 2019–present | Class 7–9 | Severe-service straight truck | Replaced International WorkStar. |
| International HX | 2017–present | Class 8–9 | Severe-service straight truck/semitractor | Successor to International Paystar. Largest product range offered as both straight truck and semitractor. |
Former products
| Vehicle name | Production | Classification | Configuration | Notes |
|---|---|---|---|---|
| International LoneStar | 2009–2024 | Class 8 | Over-the-road semitractor | Flagship model succeeding International 9000i. Features longest-hood design combining NGV cab with retro-style hood. Received modernized cab update in 2018. Discontinued in 2024. |
| International Paystar | 1973-1986 International Harvester 1987-2017 International Trucks Navistar |
Class 8 | Severe-service straight truck/semitractor | Redesigned into the International HX. Continued production through the transition from International Harvester to Navistar for over three decades. |
IC Bus (2002–present)
International broadened its foothold in the school bus sector by fully acquiring AmTran, a manufacturer of bus bodies, in 1995. Since 2002, IC Bus has functioned as Navistar’s dedicated bus production division, focusing on the manufacture of yellow school buses alongside commercial vehicles.
The IC Bus identity embodies a vertically integrated approach, combining design and assembly processes. The vehicles are predominantly built on International medium-duty chassis complemented by proprietary body designs.
| Vehicle name | Production | Applications | Notes |
|---|---|---|---|
| IC CE-Series | 2005–present | School bus Commercial-use bus |
Constructed on the International MV chassis. |
| IC RE-Series | 1996–2024 | School bus Commercial-use bus |
Utilizes the rear-engine International 3000 chassis, the final iteration of the International S-Series. |
| IC TC-Series | 2019–present | Commercial-use bus | Based on the International 3300 cutaway-cab chassis; bodywork completed by external manufacturers. |
MWM International Motores (2005–2022)
In 2005, Navistar expanded its engine portfolio by acquiring MWM International Motores, a Brazilian engine producer previously affiliated with Deutz AG. MWM was divested in 2022 to Tupy S.A. for R$865 million.
Engines (1986–present)
Navistar originated in 1986 from International Harvester’s engine division, sustaining production of gasoline and diesel engines tailored for medium- and heavy-duty trucks. Class 8 trucks were equipped with diesel powerplants supplied by Caterpillar, Cummins, and Detroit Diesel. The company inherited several engine families including the SV-series gasoline V8, IDI diesel V8, DV-series diesel V8, and DT466 inline-6. Post-1986, Navistar transitioned exclusively to diesel engine manufacturing.
The product line expanded with the introduction of a 7.3L IDI engine in 1986, which replaced the DV-series V8 by 1988 and was offered as an option in Ford trucks. The DT inline-6 series grew with the DT360 debuting in 1987 to rival Cummins’ 6BT.
In 1994, the IDI V8 was superseded by the direct-injection T444E V8—the inaugural Ford PowerStroke engine. The DT360 was phased out while the DT466E was complemented by the larger DT530E to compete against Cummins C8.3. During the 2000s, Navistar engineered engines compliant with increasingly stringent emissions regulations. The T444E was replaced in 2003 by the VT series starting with the VT365 V8. The DT engines received enhancements in 2004 including upgraded fuel injection systems and turbochargers; meanwhile, the DT530 was succeeded by the DT570.
Navistar chose Exhaust Gas Recirculation (EGR) technology rather than Selective Catalytic Reduction (SCR) for emissions management.
To comply with 2007 regulations, Navistar introduced the "MaxxForce" brand: within this lineup, the VT family included MaxxForce 5 (4.5L V6) and MaxxForce 7 (6.4L V8). The DT466 was rebranded as MaxxForce DT; larger displacement engines were MaxxForce 9 and MaxxForce 10. For Class 8 applications, new large-bore engines were launched: MaxxForce 11 (10.5L) and MaxxForce 13 (12.4L). After 2010, Ford discontinued its engine supply partnership with Navistar.
MaxxForce engines incorporated twin turbochargers to enhance emissions compliance but encountered difficulties meeting standards fully. As a result, Navistar ended its diesel engine production after 2015, substituting MaxxForce 7 and DT engines with Cummins ISB6.7 and ISL9 models.
In 2017, Navistar resumed diesel engine manufacturing with the A26—a 12.4L inline-6 derived from MAN's D26—intended to replace the MaxxForce 13.
By 2022, Navistar unveiled the International S13 engine featuring low RPM operation coupled with increased torque for better fuel economy. Unlike earlier models, this engine employs SCR technology to satisfy emissions requirements.
Plug-in hybrid electric bus
In 2009, Navistar Corporation secured funding of up to million from the U.S. Department of Energy to design and deploy a fleet of 60 plug-in hybrid electric school buses over a three-year span. These buses can operate solely on electric power or in hybrid mode and are rechargeable through standard electrical outlets, contributing to decreased petroleum use. Navistar concentrated on developing hybrid system architectures and advanced energy storage solutions to deliver an electric driving range of miles, complemented by a clean diesel engine compatible with renewable fuels. The Department of Energy provided financial support covering as much as half the total project expenses, contingent on yearly budget allocations.
eStar electric van
The eStar was an all-electric van manufactured by Navistar’s Workhorse Group division starting in March 2010. Navistar initially licensed the technology from Modec in 2009 and subsequently acquired Modec’s intellectual property rights in 2011 after Modec filed for bankruptcy. This initiative was backed by a $39.2 million grant from the DOE under the 2009 American Recovery and Reinvestment Act.
Equipped with a payload capacity of , the eStar featured cargo boxes measuring 14 or 16 feet in length, powered by a 70 kW (102 hp) electric motor paired with an 80 kW·h lithium-ion battery supplied by A123 Systems, incorporating regenerative braking technology. It achieved an all-electric driving range of miles and required 6 to 8 hours for a full charge. By May 2010, the vehicle attained EPA and CARB certifications and complied with Federal Motor Vehicle Safety Standards.
Deliveries commenced in May 2010 to customers such as FedEx Express, Pacific Gas and Electric Company, The Coca-Cola Company, and Canada Post. Priced at approximately $150,000, production of the eStar ceased in March 2013 due to Navistar’s restructuring efforts focused on improving profitability.
Founded as a separate division in 2003, Navistar Defense builds upon the company’s extensive experience in military vehicle manufacturing. Its principal offerings include the MaxxPro MRAP, MXT-MV, along with military adaptations of the 5000 and 7000 severe-service trucks, now branded as HX and HV-Series. These products support expansion within the defense market while broadening Navistar’s business scope.
General Motors
In 2007, Navistar announced intentions to purchase General Motors’ medium-duty truck segment; however, due to changing market conditions, the transaction was abandoned. Subsequently, GM discontinued its Chevrolet Kodiak and GMC TopKick models by 2009 amid bankruptcy proceedings. Renewing their cooperation later, a joint venture formed in 2015 aimed at developing new Class 4/5 commercial trucks. By 2017, Navistar’s facility in Springfield, Ohio began manufacturing cutaway van chassis for GM’s GMT610 Chevrolet Express and GMC Savana models.
Early in 2018, GM introduced medium-duty Silverado variants (4500HD/5500HD/6500HD), shortly followed by Navistar launching its International-branded CV series as a complementary lineup. Production started late that year, positioning these vehicles as replacements for the discontinued Chevrolet Kodiak and International TerraStar models. They compete directly against Ford Super Duty F-450/F-550/F-600 and Ram heavy-duty chassis cab offerings. This collaboration strengthens both companies’ presence in the commercial medium-duty truck market through shared platforms and enhanced manufacturing efficiencies.
Ford Motor Company
From the 1980s through the 2010s, Navistar maintained a substantial alliance with Ford Motor Company. Starting in 1983 with an engine supply agreement, this partnership expanded into a $400 million yearly enterprise and included collaborative manufacturing of vehicle models. The cooperation ended after the 2010 model year for diesel engines and discontinued medium-duty truck production collaboration after 2014.
During the mid-2000s, Ford provided pickup bodies for Navistar’s International XT series.
Ford diesel V8 engine
In reaction to the fuel crises of the 1970s and Corporate Average Fuel Economy (CAFE) regulations, Ford phased out large-block gasoline V8 engines from pickups and vans. For the 1983 model year, Ford joined forces with International Harvester to supply the IDI diesel V8 for ¾-ton and 1-ton F-Series pickups as well as E-Series vans. The 6.9L diesel matched the power output of the discontinued 400 cubic-inch V8 but delivered improved fuel efficiency, facilitating diesel adoption without requiring expensive engine development.
By 1988, Ford shifted to the 7.3L IDI diesel as International gradually retired the 6.9L variant. In 1994, the IDI was succeeded by the T444E featuring direct injection and marketed as "PowerStroke" to highlight its advanced fuel delivery system. This engine powered both F-Series and E-Series trucks until it was replaced by the VT365 in 2003.
For the 2008 model year, Ford introduced the MaxxForce 7 as a PowerStroke engine option for Super Duty pickups, utilizing compound turbochargers instead of the variable-geometry turbos employed by International. Due to packaging limitations, E-Series vans continued to use the 6.0L diesel engine. After 2010, Ford ceased using diesels supplied by International; from 2011 onward, Super Duty trucks adopted diesel engines developed internally by Ford while E-Series models focused on gasoline powertrains. The PowerStroke name remains a key part of Ford’s diesel engine lineup today.
Blue Diamond Truck
In September 2001, Navistar and Ford established a 50/50 joint venture named Blue Diamond Truck Co. LLC to design and produce vehicles and powertrains at International's General Escobedo facility in Mexico. Production commenced in 2004. This partnership manufactured the Ford F-650 and F-750 Super Duty trucks, which shared a common chassis but featured distinct body designs and powertrains compared to International’s 4200/4300 models.
In 2006, Blue Diamond introduced its first jointly developed vehicle: the Ford LCF/International CF low-cab cab-over-engine truck. This model combined a frame derived from the Ford F-450/F-550 Super Duty with a left-hand drive cab adapted from the Mazda Titan platform. It also debuted Blue Diamond’s initial engine offering: a 4.5L V6 based on the architecture of the 6.0L V8.
The joint venture was dissolved in 2015; International continued production at General Escobedo while Ford relocated medium-duty truck manufacturing to Avon Lake, Ohio.
On September 16, 2010, Anhui Jianghuai Automobile Co., Ltd. (JAC) entered into a partnership with NC2 Global and Navistar to jointly develop, manufacture, and market heavy-duty trucks and diesel engines within China. In May 2018, Cummins acquired Navistar’s ownership stake in this venture, thereby consolidating control.
Mahindra Navistar was established as a collaborative venture between Navistar and Mahindra & Mahindra aimed at producing heavy-duty trucks in India under the "Mahindra International" label, which was subsequently rebranded as Mahindra Navistar. These vehicles were presented at the 2010 Auto Expo in Delhi. The partnership concluded when Navistar withdrew from the venture in 2013.
DINA (Diesel Nacional, S.A. de C.V), also known as DIMEX, is a Mexican manufacturer specializing in buses and trucks, headquartered in Ciudad Sahagún, Hidalgo. Founded by the Mexican government in 1951 and acquired by Grupo Empresarial G in 1989, DINA has collaborated with firms such as Fiat, Renault, Cummins, and Scania to enhance its product lineup. The company primarily produces urban buses targeting both domestic and international markets, with DINA vehicles accounting for approximately one-fifth of Mexico’s national vehicle fleet.
In 2001, to prevent insolvency, Grupo Empresarial G restructured DINA’s finances by divesting several manufacturing plants. The state government of Hidalgo purchased DINA’s plant facilities in 2002. Following legal conflicts arising from the cancellation of a contract with Western Star Trucks, Freightliner provided compensation to DINA under undisclosed terms.
Beginning in 2004, DINA initiated the design of new passenger buses incorporating HTQ technology and adhering to global standards. By 2007, prototype models were completed, and a new manufacturing facility was established in Ciudad Sahagún with a production capacity of 23 units daily. Production resumed in May 2008 featuring four urban bus variants: Linner, Runner, Picker, and Outsider. This relaunch involved an investment of US$100 million, sustaining approximately 450 direct and 750 indirect jobs, supported by a network of five dealerships throughout Mexico.
Controversies
In December 2011, the nonpartisan group Public Campaign criticized Navistar International for allocating $6.31 million toward lobbying efforts while reportedly paying no federal taxes from 2008 through 2010. During this period, the company received $18 million in tax rebates despite earning $896 million in profits and increasing executive compensation by 81%.
On January 31, 2005, Navistar Financial announced plans to restate its financial statements for fiscal years 2002 and 2003 as well as the first three quarters of fiscal year 2004 due to previously unrecognized potential income adjustments. Subsequently, on April 7, 2006, Navistar issued restated financial results covering fiscal years 2002 through 2004 and the first three quarters of 2005 amid ongoing accounting examinations.
Accounting issues
In January 2006, Navistar postponed filing its form 10-K annual report with the U.S. Securities and Exchange Commission owing to disagreements with its auditors Deloitte & Touche regarding intricate accounting concerns. By April that year, Navistar replaced Deloitte—its auditor for nearly a century—with KPMG to assist in restating earnings back to fiscal year 2002. On December 15, 2006, further delays led the New York Stock Exchange (NYSE) to announce Navistar’s delisting after almost one hundred years of continuous trading. Although an appeal was initially filed, the company was removed from the S&P 500 Index and ultimately delisted from the NYSE. It traded on the Pink Sheets until June 30, 2008, when it regained listing on the NYSE under ticker symbol NAV following completion of required filings.
Christopher Anderson, a Deloitte partner responsible for auditing Navistar’s 2003 financials, received a one-year suspension in 2008 and became the first individual sanctioned by the Public Company Accounting Oversight Board. CEO Daniel Ustian forfeited shares valued at $1.3 million while former CFO Robert C. Lannert repaid $1.05 million connected to bonuses awarded during the restatement period; four other executives paid civil fines without admitting wrongdoing.
In December 2014, Navistar revealed further accounting discrepancies involving adjustments outside the reporting period related to product warranty costs. This resulted in an increase of $36 million in Cost of Products Sold. Additionally, the company reported a significant deficiency in controls over data validation used for warranty cost estimations and major accounting transactions, impacting the reliability of its financial statements.
Unsuccessful engine approach
In 2001, with Dan Ustian as CEO, the company encountered new Environmental Protection Agency (EPA) regulations aimed at reducing nitrogen oxide and particulate matter emissions from diesel engines, with full adherence mandated by 2010. Ustian considered several technological paths: Selective Catalytic Reduction (SCR), Exhaust Gas Recirculation (EGR), or nitrogen oxide absorbers. He dismissed SCR, anticipating resistance from truck operators to managing an additional fluid tank, and instead allocated $700 million toward developing EGR technology.
On October 31, 2007, Navistar declared EGR its official emissions compliance strategy. Ustian highlighted a customer-centric philosophy that avoided extra expenses or hassles, presenting this as an advantage over SCR systems.
By November 24, 2008, Navistar revealed plans to utilize EPA credits to fulfill the 2010 emission standards. Although SCR technology had become standard across the industry by early 2009, Ustian maintained that EGR offered a distinctive benefit, criticizing SCR for its sensitivity to temperature and the operational burden it placed on customers.
This strategic decision had a profound effect on Navistar’s market standing and financial results, exemplifying the hazards of departing from industry norms in meeting regulatory requirements.
Penalties for non-compliance
The EPA levied Non-Conformance Penalties (NCPs) against Navistar for marketing engines that failed to meet emission standards, initially set at $1,919 per engine. Navistar applied previously accumulated EPA credits to mitigate these penalties but announced in August 2012 that these credits would soon be exhausted. Shortly before this announcement, the EPA raised the penalty rate to $3,744 per engine.
In March 2009, Navistar filed a lawsuit against the EPA, contesting the agency’s guidance on SCR implementation as lacking adequate public consultation and favoring manufacturers of SCR engines. The dispute was resolved a year later.
Robust military sales, particularly orders for Mine-Resistant Ambush Protected (MRAP) vehicles, temporarily compensated for stagnant commercial sales during the recession period, as detailed in Navistar’s 2010 annual report.
In January 2012, the EPA permitted Navistar to continue selling engines under NCPs through an interim final rule. Competitors challenged this allowance, leading an appeals court in June 2012 to overturn the rule due to insufficient public notice and comment procedures.
Navistar’s exclusive dependence on EGR technology resulted in significant durability and quality challenges caused by abrasive soot and corrosive acidic gases recirculating within engines. This undermined driver confidence in Navistar trucks, prompting customers to shift toward rival brands and negatively affecting both market share and financial outcomes.
Litigation concerning MaxxForce engines
In December 2014, the U.S. Judicial Panel on Multidistrict Litigation centralized 13 out of 14 civil cases against Navistar related to defective MaxxForce engines employing Advanced Exhaust Gas Recirculation (EGR), which were alleged to cause frequent breakdowns and operational downtime.
On December 16, 2014, Navistar reported a fourth-quarter net loss of $72 million—worse than anticipated—despite a 9% increase in sales reaching $3 billion. The company attributed losses to restructuring expenses and warranty claims. Additionally, it announced plans to close its Indianapolis engine foundry, eliminating 100 positions and aiming for $13 million in yearly operating cost reductions.
During the first quarter of 2015, Navistar posted a net loss of $42 million on revenues of $2.4 billion, marking a 10% year-over-year rise. This growth was fueled by a 17% increase in Class 6-8 truck and bus charge outs across North America, including substantial gains in school bus sales (+42%) and medium-duty trucks (+25%). Export truck volumes also rose sufficiently to counterbalance declines in used truck sales. The backlog for Class 6-8 truck orders expanded by 27%.
Second-quarter results in 2015 showed a net loss of $64 million on revenues totaling $2.69 billion, slightly missing analyst forecasts. On June 9, Navistar appointed Jeff Sass—formerly with Paccar—as Senior Vice President of North American Truck Sales to bolster its market presence.
Investor Mark Rachesky’s MHR Fund Management increased its stake in Navistar to 18.9% in June 2015, reflecting confidence in the company's recovery initiatives.
In July 2015, the EPA initiated a $300 million civil lawsuit against Navistar over non-compliant engines installed in its 2010 model trucks that failed emissions tests. Navistar contested these allegations vigorously and pledged an assertive legal defense.
Also in July, Navistar refinanced its senior secured term loan facility by raising it from $697.5 million to $1.04 billion while extending maturity until August 2020, thereby improving liquidity and financial flexibility.
In March 2016, the Securities and Exchange Commission charged Navistar and its former CEO with misleading investors regarding progress on advanced engine technologies.
A Tennessee jury verdict in August 2017 held Navistar responsible for fraud connected to MaxxForce engines sold to Milan Supply Chain Solutions and awarded damages amounting to $30.8 million. Former Senior Vice President Jim Hebe provided critical testimony about engine testing practices. Navistar expressed dissatisfaction with the judgment and announced intentions to appeal, citing successful defenses in other courts previously.
Corporate facilities
| Facility Name | Location (City/State) | Country | Opening Year | Number of Employees | Function | Notes |
|---|---|---|---|---|---|---|
| International World Headquarters | Lisle, Illinois | U.S. | 2011 | 7,991 | Centralized corporate headquarters encompassing Truck and Engine divisions. | Acquired the former Lucent Technologies campus for $110 million to consolidate company operations.[1] |
| Navistar Proving Grounds | New Carlisle, Indiana | U.S. | 1926, acquired in 2015 | Facility for automotive testing and validation. | Purchased from Bosch as a replacement for the former Fort Wayne proving grounds; initially established by Studebaker as the pioneering controlled automotive test track.[2] | |
| Navistar Advanced Technology Center | San Antonio, Texas | U.S. | 2021 | 650 | Testing and validation center for diesel and electric truck components. | Acquired to succeed the Melrose Park technical center, facilitating advancements in powertrain technologies.[3][4] |
Manufacturing facilities
| Facility Name | Location (City/State) | Country | Year Established | Workforce Size | Manufactured Products | Additional Information |
|---|---|---|---|---|---|---|
| Springfield Assembly Plant | Springfield, Ohio | U.S. | 1961 | 1,450 | CV Series (including Chevrolet Silverado C6500 HD), MV Series, HV Series, GM Vista Light Duty trucks | The sole remaining facility originally owned by International Harvester still operated by Navistar. |
| Tulsa Bus Plant | Tulsa, Oklahoma | U.S. | 1941; leased by IC Bus since 2001 | 918 | RE-Series, CE-Series, TC-Series buses | Formerly a Douglas Aircraft bomber assembly site; presently shared with Boeing. |
| Huntsville Powertrain Manufacturing Plant | Huntsville, Alabama | U.S. | 2008 | 217 | A26 engine and S13 integrated powertrain production | |
| Escobedo Assembly Plant | General Escobedo, Nuevo León | Mexico | 1998 | 6,200 | HX Series, LT Series, RH Series trucks | Previously operated as Blue Diamond Truck; collaborated with Ford on designs between 2001 and 2015. |
| San Antonio Manufacturing Plant | San Antonio, Texas | U.S. | 2022 | 600 | HV Series, LT Series, RH Series trucks | Navistar’s first new assembly facility in many years; engineered to assemble both electric and conventional trucks on a single production line. |
Former Facilities
| Facility Name | Location (City/State) | Country | Opening Year | Closing Year | Products / Functions | Notes |
|---|---|---|---|---|---|---|
| Chatham Assembly Plant | Chatham, Ontario | Canada | 1948 | 2011 | LoneStar, ProStar trucks | This facility succeeded an earlier factory established in 1922. |
| Melrose Park Technical Center/Engine Plant | Melrose Park, Illinois | U.S. | 1941, acquired in 1946 | Engine plant closed 2018, technical center closed 2021 | Engine design and engineering, DT engine production | Initially a Buick Aviation facility; functioned as the engine group's headquarters and was divided into testing and manufacturing sectors. |
| Fort Wayne Truck Development Technology Center | Fort Wayne, Indiana | U.S. | 1950 | 2012 | Truck engineering and development | Served as the truck division's headquarters; closed following the establishment of Navistar’s World Headquarters in Lisle, Illinois. |
| Pure Power Technologies Waukesha Foundry | Waukesha, Wisconsin | U.S. | 1896, acquired 1946 | Sold in 2015, closed in 2020 | Engine components made from ductile iron and abrasion-resistant ferrous alloys | Originally a U.S. government defense plant; reorganized under Pure Power Technologies in 2012; later sold to Grede foundry group in 2015. |
| Indianapolis Engine Assembly and Foundry | Indianapolis, Indiana | U.S. | 1937 | Assembly ceased in 2009, foundry closed in 2015 | Engine blocks, including Navistar T444E engine, International IDI and VT engines | Centralized engine manufacturing; produced Ford trucks' Power Stroke engines until assembly plant closure in 2009. |
| Garland Truck Plant | Garland, Texas | U.S. | 1963, acquired in 1997 | 2013 | Assembly of LoneStar, TranStar, WorkStar, PayStar, MaxxPro trucks | Formerly Marmon Motor Company’s main assembly site; shut down to reduce expenses with production moved to Springfield, Ohio and Escobedo, Mexico. |
| Columbus Plastics Operation | Columbus, Ohio | U.S. | 1981 | Sold in 1996 | Manufacturing of plastic parts including SMC components such as fenders and hoods | Disposed of due to declining demand for plastic products; sale valued at $38 million in stock. |
| Equitable Building | Chicago, Illinois | U.S. | 1965 | 1989 | Corporate headquarters | Occupied eleven floors on the site of the original Cyrus McCormick reaper factory destroyed by the Great Chicago Fire. |
| NBC Tower | Chicago, Illinois | U.S. | 1989 | 2000 | Corporate headquarters | Utilized several floors before relocating to suburban offices to reduce costs. |
| Navistar Corporate Headquarters | Warrenville, Illinois | U.S. | 2000 | Closed in 2011 | Corporate headquarters | Leased a six-story office building; shut down when corporate functions were consolidated at Lisle location. |
| MWM Manufacturing Plant | São Paulo, Brazil | " | Brazil | 1953 | Sold in 2022 | Production of engine components | Transferred ownership to Tupy S.A. in 2022 as part of a strategic portfolio adjustment. |
See also
- International Harvester
- List of International (brand) trucks
- List of International Harvester vehicles
- Odyne Corporation
- Traton Group
- Volkswagen Group
External links
- ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
- ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
- ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
- ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
- Articles with short description
- American companies founded in 1986
- Navistar
- United States defense contractors
- Holding companies in the United States
- Illinois-based motor vehicle manufacturers
- Manufacturers of military vehicles
- Diesel engine producers
- Vehicle makers established in 1986
- Holding firms established in 1986
- Companies located in DuPage County, Illinois
- Lisle, Illinois
- Formerly listed on the New York Stock Exchange companies
- American subsidiaries of international corporations
- Mergers and acquisitions in 2021
- Illinois manufacturing firms
- Traton
- 5
- Companies of the United States by year of establishment
- American companies established in 1986
- Pages with script errors