Navistar International Corporation (formerly International Harvester Company) is an American holding company, which owns international brand truck manufacturers, school bus ICs and commercial buses, a Workhorse chassis brand for motor homes and step vans, and is a label designer personal and diesel engine makers for pickup truck, van and SUV market. The company is also a provider of spare parts and service of trucks and diesel engines.
Headquartered in Lisle, Illinois, Navistar has 16,500 employees and 2013 annual revenues of $ 10.775 billion. The company's products, parts and services are sold through a network of nearly 1,000 dealer outlets in the United States, Canada, Brazil and Mexico, as well as over 60 dealers in 90 countries worldwide. The Company also provides financing for its customers and distributors primarily through its wholly-owned subsidiary, Navistar Financial Corporation.
Video Navistar International
Histori
1902-1986: International Harvester
The merger of the McCormick Harvesting Machine Company and the Deering Harvester Company in 1902 resulted in the formation of the International Harvester Company (IH) in Chicago, Illinois, which for the next three quarters of the century evolved to become a diversified manufacturer of agricultural equipment. , construction equipment, gas turbines, trucks, buses, and related components. During World War II, the International Harvester produced M-series military trucks serving the Marine Corps and the US Navy as carriers of weapons, cargo carriers, and light artillery movements. Today, Navistar manufactures international brand military vehicles through its affiliate Navistar Defense.
1986-1991: The transition from agricultural roots
The International Harvester fell on difficult times during the poor agricultural economy in the early to mid 1980s and the effects of a long strike with the UAW over changes to proposed work rules. IH's new CEO, Donald Lennox, directs management organizations to start out from many of IH's historical business sectors in an effort to survive. Some profitable business sales are held to raise cash for short-term survival, while other divisions are sold for lack of direct profitability. During this questionable economic lifetime, in an effort to raise the necessary cash and to reduce losses, the management team led by Mr. Lennox at IH releases many of its operations divisions: Equipment Construction Division for Dresser Industry; Solar division (gas turbine) for Caterpillar; Cub Cadet (garden and garden equipment) for MTD Products and, finally, the Agricultural Division to Tenneco, which combines it with J.I. Subsidiary case. Scout and Light Truck Parts Business are sold to Scout/Light Line Distributors, Inc. in 1991.
After the sale of the Agriculture Division in 1985, all that remains of the IH is the Truck and Machine Division. The company was renewed on February 20, 1986 to Navistar International Corporation. (The International Harvester name and the IH logo are assets of the Agricultural Division and consequently are part of the sale to Tenneco; the name and logo of IH is still in use, after being incorporated into the brand name Case IH). In the early 1980s, IH developed a series of reliable, large-capacity V8 diesel engines that were sold as options for 3/4-ton and 1-ton Ford pickup trucks.
Navistar still uses the "International" brand in its diesel engine and truck lines, and the brand name continues on the line of International Truck and Engine Corporation subsidiary Navistar International.
1990s-early 2000s: Rediversification
During the 1980s and 1990s, the popularity of diesel engines has made Navistar the leading bus chassis manufacturer, especially the school bus. The company purchased one-third of American Transportation Corporation (AmTran), an Arkansas-based manufacturer in 1991, and the remaining two-thirds in April 1995. By becoming a body and chassis manufacturer at the same time, Navistar gained significant market share. in the industry. In 2002, AmTran was renamed IC (Integrated Coach) after several months as International Truck and Bus.
After nearly a century of business in Chicago, Navistar announced its plan on September 30, 2000 to leave town and relocate its corporate office to the western suburb of Warrenville, Illinois. The Melrose Park company, the Illinois plant is noted for the significant shooting of the workplace on February 5, 2001.
In 2004, Navistar re-entered the retail vehicle market for the first time since 1980. The International XT (Extreme Truck) pickup truck is a series of three pickup trucks. It is the largest pickup truck available for retail sale and two of the three versions (CXT and RXT) are basically Durastar International durable duty trucks equipped with pickup beds. The third version (MXT) is basically a road-legal version of a Navistar-designed military vehicle. All three XT trucks were sold until 2008.
In 2005, Navistar purchased the Workhorse company (started in 1998 by investors who took over the production and sales of the P-series Stepvan General Motors chassis when GM dropped it), the van and motorcycle chassis manufacturer, apparently back-centered the delivery van market. It appears that the new subsidiary may have also benefited from its relationship with a company whose history from the 1930s to the 60s included the popular van Metro. For a short time Workhorse offers an integrated chassis-body product called MetroStar. In September 2012, Navistar announced the closure of Workhorse and plant closures in Union City, Indiana to cut costs. The hard-working since then has positioned itself as a manufacturer of electric-powered trucks and delivery delivery trucks.
2006-2008
Accounting issues
In January 2006, the company said it would not file a 10-K annual report form with the Securities and Exchange Commission on time. These delays are caused by disagreements with auditors, Deloitte and Touche, over complicated accounting matters. In April, Navistar fired Deloitte, his 98-year independent auditor, and hired KPMG to help restate earnings back to 2002 to correct accounting errors. On December 15, 2006, Navistar executives announced a further delay of the repeat statement and the 2006 results. The announcement prompted the New York Stock Exchange to announce the delisting of the company after 98 years of trading, although the NYSE later delayed delisting pending appeals by Navistar. However, Navistar has been removed from the S & amp; P 500, and the NYSE eventually denied Navistar's plea and removed the shares; it was traded on the Pink Sheets until June 30, 2008, when it was back on the NYSE, under the ticker symbol before, NAV, after pursuing it with his submission. Christopher Anderson, Deloitte's partner in charge of the 2003 audit, received a one-year suspension of public audits in 2008, and became the first person to be fined by PCAOB.
CEO Daniel Ustian agreed to surrender to Navistar shares worth $ 1.3 million, while former Chief Financial Officer Robert C. Lannert agreed to pay $ 1.05 million, any amount reflecting the monetary bonuses they received during the restatement period, the SEC said. Four other corporate executives paid civil penalties without recognizing obligations.
In December 2014, Navistar revealed more accounting issues. This involves adjustment beyond the period, which is a correction of a previous period error associated with a product warranty. This results in an increase of $ 36 million in Cost of Sale Items. In addition, material weaknesses are expressed. In the company's annual 10K, they report that the weakness is "validation around the completeness and accuracy of the underlying data used in the determination of significant accounting estimates and accounting transactions.In particular, controls are not designed to identify errors in the underlying data used. estimated warranty costs and other significant accounting estimates and accounting effects of significant transactions.
In 2007, Navistar International Truck and Engine Corporation became the first company to enter the production of hybrid commercial trucks, with DuraStar Hybrid diesel-diesel trucks.
Navistar Defense LLC is a major supplier of MRAP armored vehicles to the US military. The Navistar 7000 series has been deployed by Canadian Forces for domestic operations. In 2005, the US Army ordered 2,900 7000-MV for the Afghan National Army and the Iraqi Ministry of Defense and an additional 7,000 orders were added in 2008.
Navistar Defense also has a small Canadian branch, named Navistar Defense Canada.
Navistar Defense reported sales of $ 3.9 billion in 2008 and $ 2.8 billion in 2009.
In October 2009, the company entered into a strategic agreement with the Czech-based company, Tatra, to jointly develop, manufacture and market new military vehicles.
In December 2009, analysts were skeptical of the company's long-term potential. "Navistar came out of nowhere and became a big player with MRAP, in what is a short-term program," said Dean Lockwood, an analyst at Forecast International Inc., a Connecticut-based defense consultant. "They did not prove themselves as long-term main players."
In 2010, Navistar Defense sales reached $ 1.8 billion. The company's annual 10K report this year states "we continue to hope that in the long run our military business will generate about $ 1.5 billion to $ 2 billion in annual sales."
In 2011, Navistar Defense sales reached $ 2.0 billion.
In 2012, Navistar Defense reported sales of $ 1.0 billion. Business Insider ranked Navistar Defence ranked 22th in the top 25 US defense companies.
In 2013, Navistar Defense reported sales of $ 543 million. In the company's 10K filings, they project military sales will continue to decline, citing US budgetary constraints.
In 2014, Navistar Defense reported sales of $ 149 million. The company projects military sales in 2015 to be slightly higher due to recent contract awards associated with the government's MRAP fleet.
In 2015, Navistar Defense reported sales of $ 203 million. Military sales in 2015 consist primarily of repair and upgrading of government-owned MaxxPro vehicles to "like-new" conditions, upgrade kits, parts, and technical support services. The company projected sales of 2016 to be slightly higher than 2015 due to recent vehicle contract awards, additional improvements and upgrades of government-owned MaxxPro vehicles and technical support services.
In its 2016 annual report, Navistar Defense reported $ 198 million in sales. Military sales in 2016 consisted mainly of sending MILCOT variants to foreign military, repairing and upgrading of state-owned MaxxPro vehicles to "like-new" conditions, upgrade kits, parts, and technical support services. In 2017, the ND said it hoped its US military sales would be consistent with 2016 because their contract guarantee consisted of a mix of similar products as in 2016.
Subpoena of DOD US Inspector General
In the third quarter of 2016, Defense Navistar said it received a subpoena from the Inspector General of the US Department of Defense to request documents relating to the sale of several independent suspension systems to the government. Defense Navistar says it will be obedient. Court calls are linked to an independent suspension system sold for military vehicles between 1 January 2009 and 31 December 2010. On 3 June 2016, ND met with government representatives, including representatives from DOD IG and the US Department of Justice, to discuss the issue. ND made responsive document submissions to subpoenas in June and August 2016 and substantially completed the response of the summons.
Awarded contracts, losses and other occasions
On August 22, 2012, Navistar Defense lost their offer to Engineering, Manufacturing & amp; Development (EMD) contract worth $ 187 million for Joint Light Tactical Vehicle (JLTV) program of Army and Marine Corps. Navistar has proposed Saratoga vehicles for the competition. On Friday, August 28, 2012, Navistar filed a protest to the Government Accountability Office (GAO), but withdrew their protest on Tuesday, September 4, 2012.
2013
On June 20, 2013, Navistar Defense ceased production at West Point, their MS production plant. 80 workers are told that July 5, 2013 will be their last day. West Point is best known for producing MRAP vehicles. The company cited foreclosures, withdrawals in Afghanistan and a challenging environment in the defense industry as a factor.
On August 22, 2013, Navistar Defense lost an offer for a Ground Mobility Vehicle (GMV) 1.1 contract, potentially worth $ 562 million. Navistar has proposed a Special Operations Tactical Vehicle (SOTV) for the competition. On Tuesday 1 September 2013, Defense Navistar and AM General protested. On December 19, 2013, the Government Accountability Office (GAO) rejected the protests of Navistar and AM General.
2014
In January 2014, the Pentagon announced that it had informed allies about their intent to provide or dispose of the 13,000 MRAPs used. This is because the war in Afghanistan subsided, the military wanted a lighter and high-cost vehicle to send them from the Middle East back to the US Recipients have included various police departments and universities. Navistar Defense built 9,000 of the 27,000 vehicles purchased by the Pentagon. Submitting MRAP is seen as a blow to the sales of Navistar Defense parts.
In December 2014, Navistar Defense lost their bid for an Engineering, Manufacturing Development (EMD) contract for Armored Multi-Purpose Vehicle (AMPV). BAE was awarded a $ 382 million contract on December 23, 2014.
Navistar Defense loses their offer to the Canadian Department of National Defense (DND) Project MSVS (Secondary Vehicle Support System) - SMP (Standard Military Pattern) vehicle contract. They propose their ATX8 vehicles as part of an agreement with the Czech-based company, Tatra. The contract is for acquisition and support in the service (ISS) of a fleet of up to 1,500 SMP vehicles, up to 150 Armor Protection Systems (APS) kits, and 300 Load Handling System (LHS) trailers. Competitors include Oshkosh (MTVR), BAE Systems (FMTV), Daimler AG (Zetros), Renault Trucks (Kerax 8x8) and Rheinmetall/MAN (HX77 8x8). The award award decision is expected in June 2015. On July 16, 2015, Canada granted the Acquisition and Support Service support contract to Mack Defense, LLC (Renault Trucks).
On July 25, 2014, DOD granted $ 27.6 million modification to existing contracts to purchase mine-resistant hardware, which was attacked by an ambush to upgrade MaxxPro Dash and long wheel ambulance to their final configuration. Estimated completion date is May 30, 2015.
On August 27, 2014, DOD awarded a $ 38 million contract to Navistar Defense to restore the MRAP Maxx Pro Dash vehicle to a "like-new" standard. DOD reports that Navistar is the only bidder. The work includes adding an independent suspension system and compulsory parts replacement, with an estimated completion date of 30 June 2016. The work will be conducted at West Point, MS.
In September 2014, Navistar Defense announced they will hire 200 workers and reopen operations at West Point, their MS production plant. West Point has been unemployed since June 2013 due to binding, withdrawals in Afghanistan and declining orders.
In September 2014, in the midst of many divestitures, CEO of Navistar Inc. Troy Clark gave the defending Navistar Defense a notion, noting that the military business unit would be preserved. In a September 2014 interview with Reuters, he said "this is not a multibillion-dollar growth opportunity, but it's not something that weighs on the future of our company."
On October 14, 2014, Navistar Defense was awarded a US $ 9.2 million contract agreed with the price of a foreign company (FMS) to Jordan for one hundred and four tons of 4x4 cargo trucks and twenty-day operator and maintenance training. The work will be conducted in New Carlisle, Ohio with an estimated completion date May 20, 2015. Offers are requested via the internet with nineteen received.
2015
On February 2, 2015, Navistar Defense was awarded a $ 15,381,152 fixed price contract with an option for eight MaxxPro Hardware MRAP Kit to support standardization and reset of MaxxPro vehicles. The work will be conducted in Lisle, Illinois, with an estimated completion date of July 16, 2016. Offers are requested through the Internet with one received. Another 2015 Fiscal procurement (Army) fund in the amount of $ 15,381,152 is required at the time of the award. Army Contractor Command, Warren, Michigan, is a contract activity (W56HZV-15-C-0070).
On March 18, 2015, Navistar Defense received a fixed cost-plus-cost multi-year contract of $ 83,424,223 for system technical support and support system support support for MRAP MaxxPro vehicles. Funding and work location will be determined with each order with an estimated completion date of 31 March 2019. One offer is requested with one received. Army Contractor Command, Warren, Michigan, is a contract activity (W56HZV-15-D-0037).
On April 13, 2015, Navistar Defense was awarded a fixed price contract for $ 17,522,057 with the option to get seven MaxxPro Dash Maximum Rescue Defender Rescue Maxx Protection for standardization and MaxxPro vehicle reset. The work will be conducted in Lisle, Illinois, with an estimated completion date of December 31, 2015. One offer is requested with one accepted. Fiscal 2014 and 2015 other funds in the amount of $ 17,522,057 are required at the time of the award. Army Contractor Command, Warren, Michigan, is a contract activity (W56HZV-15-C-0092).
On April 30, 2015, Navistar Defense was awarded a $ 31,199,783 (P00004) modification to contract W56HZV-14-C-0102 to reset and upgrade the family of MRAP (protected mine protected mines) to the A-Code standard. The work will be carried out at West Point, Mississippi, with an estimated completion date of July 31, 2016. Fiscal 2013 and 2015 other procurement (Army) and operations and maintenance (Army) funds in the amount of $ 17,990,419 are mandatory at that time. Army Contractor Command, Warren, Michigan, is a contract activity.
In April 2015, Navistar Defense President Bob Walsh resigned. On May 19, Kevin Thomas was promoted to President.
On August 31, 2015, Navistar Defense was awarded a foreign military sales contract worth US $ 368,932,767 for 2,293 medium tactical vehicles. The work will be done at West Point, Mississippi; Ooltewah, Tennessee; Marion, Wisconsin; Springfield, Ohio and Mercer, Pennsylvania, with an estimated completion date of November 30, 2019. One offer is requested with one accepted. Fiscal 2014 of other procurement funds of $ 368,932,767 is required at the time of the award. Command of the Army Contractor, Warren, Michigan, is a contract activity (W56HZV-15-C-0207).
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On May 19, 2016, Navistar Defense was awarded a $ 11,682,550 price contract, a foreign military sales contract (Afghanistan) for 50 medium-vehicle tactical vehicle riders. Estimated completion date is October 31, 2016. One offer is requested with one received. The work will be done in Springfield, Ohio; and Kansas City, Kansas. Fiscal 2015 of other procurement funds of $ 11,682,550 shall at the time of award. Army Contractor Command, Warren, Michigan, is a contract activity (W56HZV-16-C-0128).
On May 24, 2016, Navistar Defense was awarded a $ 29,791,289 (P00014) modification to contract W912QR-16-D-0025 to reset and upgrade an additional 250 Mine Resistant Ambush Protected Vehicle (MRAPs), with options for up to 200 additional vehicles. Work will be carried out at West Point, Mississippi, with an estimated completion date May 31, 2017. Fiscal 2016 other procurement (Army); and the operation and maintenance (Army) funds in the amount of $ 29,791,289 are required at the time of the award. Army Contractor Command Warren, Michigan, is a contract activity.
2001-Present: Failed machine strategy, layoffs, consolidation and strive for profitability
Machine Strategy Failed
In 2001, then CEO Dan Ustian faced many EPA regulations to reduce the amount of nitrogen oxide and soot derived from diesel engines. Despite changes in the compliance arena, the regulation will not begin gradually until 2007, with full implementation slated for 2010.
Ustian has several technical paths available. Among these are Selective Catalytic Reduction (SCR), Exhaust Gas Recirculation (EGR) or the use of nitrogen oxide absorbers. All require more engineering and development to achieve compliance. Ustian believes truck drivers do not want to bother with extra fluid tanks after treatment. As a result, he convinced the company to spend $ 700 million to fund EGR development.
On October 31, 2007, Navistar officially announced their intention to move forward with EGR as a corporate strategy. The company's statement includes Ustian saying "I have publicly become a supporter of customer-friendly emissions control solutions that do not add additional costs to our truck and bus customers.While SCR is a means to achieve NOx reduction requirements for 2010, it comes at a steep cost to our customers.Our ability to achieve our goals without incurring costs and customer inconvenience is a competitive advantage for the International. "
On November 24, 2008, Navistar said it would use EPA Credit to comply with 2010 law.
In February 2009, Ustian praised the benefits of EGR technology as a key differentiator for enterprise machines. However, now, the rest of the industry has chosen to use the appropriate SCR technology. Ustian disagrees with the SCR, saying "another thing EGR avoids is the risk of SCR strategy Read this label and it will show you that there are challenges while staying in control of the use of this technology: 'Save between 23 degrees and 68 degrees.' basically it says you can not throw it outside.You can not operate it in a condition above 85 [degrees] or under 12 [degrees].You can, but, it will put the load onto the customer. "
Non-Conformity Penalty
The EPA recognizes an imminent Navistar non-compliance and creates a Non-Conformity Reasoning system (NCPs) that includes a $ 1,919 fine for any non-compliant machine sold by Navistar. To bridge the gap, Navistar began using EPA credits that had previously been earned for being obedient in lieu of fines. In August 2012, Navistar stated that they would run out of EPA credits right away. Just days before EPA announced a new penalty increase of $ 3,744 per machine.
In March 2009, Navistar sued the EPA, claiming that the agency guidance document for SCR implementation was invalid because they were adopted without a public process and with input only from the SCR machine maker. Navistar and EPA completed the lawsuit a year later.
Further covering the EGR problem is high military sales. In the company's 10K report in 2010, Navistar cited an order for MRAP as offsetting commercial sales flat due to the recession.
Move to Lisle, Illinois
In September 2010, despite the uncertainty over EGR and the sluggish economy, Navistar's leadership revived efforts to relocate company headquarters from Warrenville, IL, to nearby Lisle, IL. The new headquarters is expected to maintain or create 3,000 permanent jobs and about 400 construction jobs. President Navistar And Ustian says about 500 engineers will be hired soon. Navistar aims to invest $ 110 million in the 1.2 million square foot Lisle campus, which will include product development. The state provides Navistar incentives of almost $ 65 million, including tax credits.
In March 2011, Navistar announced a move to Lisle. Renovations finished in the fall, but the company gradually moved from Warrenville to Lisle in the summer of 2011. "You can not build campus like this anywhere for the price nearing the price we pay, and though you may get more incentives, when you see the whole picture, you really can not beat it, "said Don Sharp, vice president of Navistar.
In 2011, Navistar began to gradually build the Truck Development and Technology Center (TDTC) in Fort Wayne, Indiana. In early December 2011, the company laid off 130 employees, mostly engineers and designers who were members of the United Auto Workers. In total, 300 of the 1,400 employees of Fort Wayne finally accepted the offer to move to Illinois. 1,100 other workers retire or choose to remain in Indiana and look for work elsewhere. The cost to move employees and consolidate operations is estimated to be $ 75 million. The only Navistar employee left after December 2012 is 20-25 people manning the company's test track on Oxford Street. At the end of July 2015, TDTC was closed and the remaining workers were released.
In January 2012, the EPA adopted a provisional final rule that allowed Navistar to continue selling machines subject to the NCP. Some of Navistar's competitors were sued, and in June 2012 the same court of appeal ruled that EPA's provisional rules were invalid for not providing public notice and an opportunity to comment.
Meanwhile, EGR Navistar's decision has caused significant reliability and quality issues. Truck drivers began to lose confidence and confidence when Navistar vehicles often broke down. As a result, they abandoned Navistar trucks for competing trucks.
Tension Mounts
In June 2012, speculation surfaced about a possible takeover of the troubled truck maker. This came as hedge fund MHR Fund Management LLC revealed a 13.6% stake in the company, slightly higher than billionaire investor shares, Carl Icahn, a 11.9% stake. As a result, Navistar adopted a defense poison pill. If the plan is triggered by an outside investor who takes 15 percent or more shares in the company, then Navistar will issue the rights of its shareholders who will let them buy new common shares in the company at a 50 percent discount: For each share owned, the investor can buy $ 280 worth of new shares worth $ 140. Investors who take 15 percent or more of the shares will not have the right to buy additional shares.
In August 2012, Navistar announced it will use Cummins engine and SCR technology. After 37 years with the company, Dan Ustian immediately retired in August 2012 and left his position on board as well. Former Director of Textron Lewis Campbell was appointed as interim CEO and Troy Clarke was promoted to Chief Operating Officer. Ustian's severance package starts at $ 7.9 million. The company's proxy statement has forecast a total package of $ 14.6 million, depending on the stock price of $ 42.07 on October 31, 2011, the end of the company's fiscal year.
On September 9, 2012, billionaire and major shareholder, Carl Icahn sent an open letter to the board of Navistar, criticizing them for "bad business decisions" and "bad corporate governance." Icahn noted from 2009-2012 that "This Board has the authority to spend shareholder's money on lawsuits against suppliers, competitors and regulators, marketing plans to convince customers that non-compliant machines are perfectly compatible, accumulate non-core assets such as producers Recreational Vehicles, and "gold-plated" headquarters valued at more than $ 100 million.One thing that the Board refuses to spend money is a backup plan that involves the industry-standard technology that must now be relied upon by Navistar. "
In a September 2012 interview, Cummins CEO Tom Linebarger said, "everything we do is be nice to them (Navistar) even when they are not talking about us," he smiled, remembering the loud comments that Navistar executives have made about SCR used by all competitors.
In October 2012, Chief Product Officer Deepak Kapur resigned, followed by Group Vice President of Product Development Ramin Younessi in December 2012. CIO Don Sharp also left the company in April 2013.
Termination and consolidation
August 2012 presents Voluntary Separation Program (VSP) and voluntary layoffs. This is due to failed engine strategy, increased warranty costs and decreased commercial and military sales. The company releases 500 employees and in September 2012 announced plans to lay off 200 paid employees.
In addition, the company announced it will close its Garland, Texas manufacturing facility in mid-2013, resulting in a loss of 900 jobs.
In March 2013, Navistar announced that the interim CEO Lewis Campbell would resign and COO Troy Clarke would be named CEO and Chairman of the Board. Jack Allen is named COO. In June 2013, CFO A.J. Cederoth resigned and James M. Moran, senior vice president and treasurer of Navistar, will act as a temporary CFO until a successor can be found. In late June 2013, former General Motors executive Walter Borst was named Executive VP and CFO.
In September 2013, Navistar announced it would cut 500 more jobs amid a larger-than-expected third-quarter loss. Navistar reported earnings that were slower than expected against profitability due to large market share losses, declining sales and weak market conditions.
In May 2014, the third round of layoffs in several years occurred at the company headquarters as part of ongoing cost-cutting measures.
On July 31, 2015, Navistar halted operations and laid off the remaining 15 employees at the Truck Development and Technology Center (TDTC) in Fort Wayne, Indiana.
In November 2015 and December 2015, several hundred Navistar employees voluntarily left the Corporate Center office in Lisle, IL, as part of another Voluntary Separation Package (VSP).
Cutting costs and divesting
As part of the turnaround plan, Navistar executives cut costs aggressively. They cut SG & A costs by 16% in 2013 and cut product development spending by 24%. Interim Priority CEO Lewis Campbell includes a focus on quality, reduced corporate cost structure and restore its product line.
Navistar also sells some businesses that are considered not enough to provide Return On Invested Capital (ROIC). Among them are the Corporate Corporate Coach SUV (RV) business as well as the Workhorse Chassis. They also quit their joint venture with Mahindra and sold their E-Z Pack unit, which makes the agency for garbage trucks, as well as the Continental Mixer unit, which makes concrete mixers, for a price that the company characterizes as "immaterial."
In January 2014, Forbes reported some of the key challenges facing Navistar, which include declining military sales, a $ 2.7 billion short-term pension plan, two self-expressed weaknesses in accounting practices and a new joint employment agreement for 6,000 full employees and part-time companies represented by trade unions.
In February 2014, Navistar announced it will relocate some engine production operations from Huntsville, AL, to Melrose Park, IL in the summer of 2014. This move eliminates 280 jobs in Alabama and saves about $ 22 million. Navistar said it will retain two other diesel engine plants operating in Huntsville.
In September 2014, Navistar reported its best quarter in years. It announced a third-quarter net loss of $ 2 million, or $ 0.02 per diluted share, compared to a third-quarter net loss of $ 247 million in 2013, or $ 3.06 per diluted share. Also in September, CEO Troy Clarke announced that the company's biggest divestment has been completed, and the focus now is to regain lost market share.
On November 6, 2014, leadership changes continued at Navistar, with Executive VP and COO Jack Allen retiring soon. Rather than hire a new COO, CEO Troy Clarke shares COO duties among three other executives.
Legal issues and profitability seizures
In December 2014, the United States Judicial Panel on Multidistrict Litigation ordered that 13 of the 14 civil suits filed against Navistar for the MaxxForce machine would be consolidated into one case. The consolidated lawsuit says that the use of the Advanced Gas Exhaust Gas Exhaust Emergency Control System by Navistar, or EGR, is damaged and results in repetitive machine failures and frequent repairs and stoppages.
On December 16, 2014, Navistar reported a bigger-than-expected fourth quarter net loss of $ 72 million. While sales rose 9 percent to $ 3 billion, the company called restructuring fees and warranties as the main reason for the loss. The day before, the company announced it would close its foundry plant in Indianapolis, resulting in a loss of 100 jobs and cost $ 11 million. The company estimates an annual savings of $ 13 million in operating costs.
In March 2015, Navistar reported a first-quarter net loss of $ 42 million in 2015, or $ 0.52 per diluted share, compared to a $ 248 million first-quarter net loss of $ 248 million, or $ 3.05 per diluted share. Revenues in the quarter were $ 2.4 billion, up $ 213 million or 10 percent, compared to the first quarter of 2014. Higher income in the quarter was driven by a 17 percent year-on-year increase in fees for the 6-8 truck class and buses in the United States and Canada. This includes an increase of 42 percent of school buses; 25 percent increase in 6/7 class trucks; 7 percent increase in grade 8 heavy truck; and a 5 percent increase in grade 8 heavy service trucks. Higher sales in the company's export truck operations also contributed to the increase, partially offset by lower sales of used trucks. The company completed its first quarter with a 27 percent year-over-year increase in order to backlog for the 6-8 truck class.
On June 4, 2015, Navistar reported a second-quarter net loss of $ 64 million, or 78 cents per share, compared with a year-earlier loss of $ 297 million, or $ 3.65 per share. Revenue dropped to $ 2.69 billion from $ 2.75 billion. Analysts expect a loss of 18 cents per share and revenue of $ 2.82 billion.
On June 9, 2015, Navistar named Jeff Sass as Senior Vice President of North American Truck Sales. Sass previously worked 20 years for rival Paccar.
On June 12, 2015, Mark Rachesky's MHR Fund Management LLC revealed a 6% increase in shares in Navistar, up to 15,446,562 shares. The company now has 18.9% of Navistar.
In July 2015, the Environmental Protection Agency filed a civil lawsuit against Navistar seeking a $ 300 million fine for its use on non-compliant engines in 2010 model trucks - machines that did not meet the exhaust emissions standards of the agency. "Because (Navistar) completed the manufacturing and assembly process for the subject machine in 2010... every engine was 'manufactured' in 2010 and therefore not a 2009 machine model," the complaint said. Navistar classified the engine as a model engine in 2009 because it started assembling it in 2009. Navistar has stated that they deny the allegations and will "aggressively defend" their positions.
On July 20, 2015, Navistar announced that it would refinance a $ 697.5 million long-term loan facility secured by Navistar, Inc., which matures in August 2017, with a new $ 1,040 billion new term guarantee loan that will fall tempo in August 2020. The refinancing will extend the maturity of the term loan facility and provide additional liquidity and financial flexibility for the company.
In March 2016, the Securities and Exchange Commission assigned Navistar with a misleading investor about the development of its advanced technology truck engine.
In August 2017, the Tennessee jury found that Navistar committed fraud and violated the Tennessee Consumer Practice Act in connection with the sale of 243 Navistar International ProStars with the MaxxForce engine to Milan Supply Chain Solutions. It provided $ 10.8 million in actual damages and $ 20 million in damages. The trial included testimony from Jim Hebe, former vice president, North American Sales Operations. Hebe retired in October 2012. Hebe's testimony of the machine program states that the company "did not test s ** t". In a statement, Navistar said it was disappointed with the jury's verdict and was evaluating its choice to oppose it, noting that it had successfully defended similar claims in several jurisdictions, including the dismissal of fraudulent claims in courts in Texas, Wisconsin, Michigan, Indiana, Alabama and Illinois.
General Motors Co. and Navistar has reached a long-term agreement to develop and assemble a fourth-class commercial vehicle of medium-sized commercial taxis, enabling Navistar to strengthen its product lineup and GM to expand the portfolio of Chevrolet commercial trucks. Future trucks will be developed together using Navistar's expertise in rolling chassis configurations and manufacturing capabilities, as well as GM's commercial components and engines. The vehicle is scheduled for production in 2018 and will be produced at Navistar facility in Springfield, Ohio.
Strategic partnership with Volkswagen Truck and Bus GmbH
In September 2016, Navistar and Volkswagen Truck & amp; Bus GmbH, a subsidiary of Volkswagen Group that controls European heavy truck manufacturer MAN Truck & amp; Bus AG and Scania AB, announced their intention to pursue strategic technology collaboration and to establish a joint venture procurement. Volkswagen Truck & amp; The bus will take a 16.6% stake in Navistar, in return for an investment of $ 256 million. Navistar expects to realize a cumulative synergy of $ 500 million over the first five years In March 2017 it was announced that Volkswagen Truck & amp; Bus equity investment of 16.6% at Navistar takes effect from 28 February 2017, with Volkswagen Truck & amp; Bus executives Andreas Renschler and Matthias GrÃÆ'¼ndler joined the Board of Directors of Navistar.
Maps Navistar International
Brand
International Truck
In 1986, after the transition from the International Harvester to Navistar, the truck product line (which is essentially all that remains) dropped the "Harvester" part of the brand name. International brands include a variety of medium-sized, over-the-road, and heavy-duty trucks.
- Pickups (XT-Series)
- MXT/CXT/RXT (2004-2008)
- In Duty
- International TerraStar Conventional 4-5 Class
- International CityStar LCF (low front cabin) above cabin
- International Classical DuraStar 6-7
- Heavy Duty
- International conventional LoneStar
- Conventional International LT Series
- International Conventional RH Series
- International 9000 Series conventional
- International Conventional ProStar
- International Conventional Transtar
- Heavy Duty
- Conventional International HX Series
- Conventional International HV Series
- International conventional PayStar
- Conventional International WorkStar
- Pickup truck
- SOTV-A International
- SOTV-B International
- MXT-MV International
- MXT-MVU International
- MRAP
- International MaxxPro
- Class 8
- International ATX-6
- ATX-8 International
- International 5000-MV
- International 7000-MV
IC Bus
International has a long history in the school bus industry as a chassis provider, since when the school bus was first moved. In 1991, Navistar entered the school bus industry as a body manufacturer when it began the acquisition of AmTran, an Arkansas-based company founded as Ward Body Works in 1933. Today, IC Bus manufactures several full-sized school bus models along with buses for use commercial.
- School bus/activity
- AE-Series conventional cutaway-cab (based on International TerraStar)
- BE-conventional series (3300LP International chassis)
- Conventional CE series (International chassis 3300)
- available in hybrid-electric hybrid configuration
- Series-behind engine RE-style transit (International 3000 chassis)
- Commercial bus
Along with the commercial derivatives of the school bus product line, IC offers these different products:
- AC series cut taxi (based on International TerraStar)
- cut-HC cab series (based on International DuraStar)
- available in electric-hybrid configuration
- LC-Series low floor cutaway cabins (based on International DuraStar LP)
- Motorcoaches
IC Bus has introduced concept vehicles both in 40 feet (12 m) and 45 feet (14 m) in length.
International Truck and Engine recently launched the "MaxxForce" brand for its diesel engine line. The machine is labeled as "MaxxForce" followed by the number corresponding to the engine displacement, rounded. Thus, the 4.5L VT275 becomes "MaxxForce 5. The Maxxforce Diesel engine line was recently discontinued because Navistar International has many problems and reported problems with the engine.Fridors continue to use the Power Stroke brand name in International- sourced engines.However, the 6.7L Power Stroke new is not an internationally designed machine.
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Joint ventures
Ford Motor Company
Since the 1980s, Navistar has close ties with Ford Motor Company. The relationship begins as a machine-sharing deal, but evolves into the production of all vehicles. However, in May 2014, Ford slashed Navistar from the commercial truck business F-650 and F-750. Navistar has built it for Ford since 2001. Beginning in 2015, Ford started producing the truck itself. This is about $ 400 million per year business.
Ford PowerStroke diesel Ford PowerStroke
- available in hybrid-electric hybrid configuration
- available in electric-hybrid configuration
As a result of the 1970s gas crisis, large block V8 gasoline engines (such as the Ford 460) began to be disliked by pickup truck buyers. In the 1980s, diesel engines in American pickup trucks (introduced by General Motors in 1978) have become popular, as they offer large block V8 power with a smaller engine fuel economy. Ford signed a supply agreement with International Harvester to receive its 6.9 liter L IDI V8 engine. The first diesel-powered pickup truck made its debut for 1982; it is available for 3/4 and 1-ton models. GM at the time had the Detroit Diesel V8 engine also on its debut, before that GM used 350 Diesel. Dodge started using Cummins six-cylinder in 1988.
In 1994, when International 7.3Ã,® L IDI V8 was replaced by the T444E, the diesel option stamped "Ford PowerStroke" to emphasize the switch to direct injection. Throughout the 1990s and 2000s, Ford offered International/Navistar V8 (because DT inline-6 ​​is too big to pack in pickup trucks) in Ford Super Duty pickup trucks. In 2010, 6.4Ã,® L Ford PowerStroke V8 was the last of the International diesel/Navistar engines used in the Ford F-Series Super Duty lineup. When Ford redesigned Super Duties in 2011, it was equipped with 6.7Ã,® L V8 designed and manufactured by Ford.
Blue Diamond Truck
In 2001, Navistar established a long-term joint venture with Ford Motor Company (20 years) to produce medium trucks and spare parts, including diesel engines for both holding companies. The new company, Blue Diamond Truck Co. LLC, operates at Navistar's plant in General Escobedo, Mexico. Its first product is the 2004 Ford F-650 and F-750 medium-duty trucks.
On September 16th, 2010, Anhui Jianghuai Automobile Co., Ltd. (JAC) announces a joint venture with NC2 Global and Navistar International Corporation that will develop, build and market heavy duty trucks and diesel engines in China. In May 2018, it was announced that Cummins would buy Navistar's equity in the venture.
Navistar formed a joint venture with Mahindra & amp; Mahindra to build large trucks in India under the brand "Mahindra International", which has since been renamed Mahindra Navistar. These trucks are featured at Auto Expo 2010 in Delhi, India.
Joint Venture stops because Navistar is out of joint venture in 2013.
Tatra
Tatra and Navistar Defense introduced in Eurosatory Exposition in Paris, France (14-18 June 2010) the results of their strategic alliance since October 2009, the ATX6 model (universal carrier container) and ATX8 (carrier troop) Vehicles appear to be based on Tatra T815-7 (T817 ) 6x6, 8x8 chassis, suspension and cabin while using Navistar engine and other components. Under the agreement of Navistar Defense and Tatra U.S. will market vehicles in North America, which include sales to the United States military and foreign military sales funded by the United States government. Tatra will provide parts and components through Navistar support components and networks for Tatra trucks shipped to markets outside North America, and market Navistar-Tatra vehicles worldwide in their primary markets.
More
- In 2005, Navistar purchased MWM International Motores, a Brazilian machine manufacturer previously associated with Deutz AG.
- Navistar International has a contract with Budget Truck Rental to produce its rental trucks.
- Navistar signed an agreement to buy a heavy duty unit of General Motors in 2007, but due to changing market conditions, the purchase was not completed.
Plug-in electric vehicle
Hybrid plug-in hybrid bus
The US Department of Energy announced in 2009 the selection of Navistar Corporation for a joint-cost award of up to US $ 10 million to develop, test and deploy schools of plug-in hybrid electric vehicle (PHEV) buses. The project aims to deploy 60 vehicles for a three-year period in school bus fleets across the country. Vehicles will be able to run in electric mode only or hybrids that can be recharged from a standard electrical outlet. Since electricity will be their primary fuel, they will consume less oil than standard vehicles. To develop PHEV school buses, Navistar will examine a variety of hybrid architectures and evaluate advanced energy storage devices, with the aim of developing vehicles with a distance of 40 miles (64 km). Out-of-range travel will be facilitated by clean diesel engines capable of running on renewable fuels. The funding of the DOE will cover half of the project cost and will be awarded over three years, subject to annual allocations.
eStar electric van
EStar is an all-electric van. Production began in March 2010 and the first shipment began two months later through the Betel Workers Group division. The technology used in eStar was licensed to Navistar in 2009 in a joint venture with Modec and Navistar purchasing the intellectual property rights of Modec bankruptcy administrators in 2011. The introduction of eStar is supported by US $ 39.2 million US Department of Energy stimulus grants under the American Recovery 2009 and Reinvestment Act.
EStar has a payload capacity of 5,100 pounds (2,300 kg) available with a 14 or 16 foot cargo box. The vehicle is powered by a 70 hp 102 hp electric motor powered by a 80kWhr lithium-ion battery supplied by the A123 System, and also uses regenerative braking. The electric car has a range of 100 miles (160 km), and the full charge takes between 6 and 8 hours. In May 2010, eStar has received the US Environmental Protection Agency (EPA) and CARB certification. EStar also meets all Federal Vehicle Safety Standards (FMVSS).
The first vans were delivered in May 2010 to FedEx Express for use in Los Angeles. Other customers include Pacific Gas and Electric Company (PG & E), The Coca-Cola Company, and Canada Post. The eStar has a price of US $ 150.000 .
Navistar stopped van eStar in March 2013, as part of its restructuring plan to focus on current profitability.
Criticism
In December 2011, the Nonpartisan Public Nonpartisan Campaign criticized Navistar International for spending $ 6.31 million on lobbying and not paying any taxes during 2008-2010, instead of getting $ 18 million in tax cuts, despite making a profit of $ 896 million and increasing executive salary of 81%. On January 31, 2005, Navistar Financial said it would restate its financial statements for fiscal year 2002 and 2003 and the first three quarters of fiscal year 2004, not considering potential revisions to future earnings. On April 7, 2006, Navistar restated its financial results from 2002 to 2004, and for the first three quarters of 2005, due to accounting practices that are subject to continuous review.
Images
See also
- International Harvester
- International truck list (brand)
- List of International Harvester vehicles
- Odyne Corporation
References
External links
- Official Site
Source of the article : Wikipedia
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