WARRENVILLE, Ill. — Navistar International announced it will reorganize its truck segment into four business units: North American Truck Operations, Global Truck Operations, Global Bus Operations and Navistar Defense.
According to Dan Ustian, Navistar chairman, president and chief executive officer, reorganization will enhance its competitiveness around the world and strengthen its core businesses in North America.
“We are organizing our truck segment to better capitalize on the momentum and opportunities ahead for Navistar in our core markets and around the world,” said Ustian. “Just a few years ago we set the goal to double our revenue to become a $15 billion company by 2009, and we are on the brink of achieving that mark despite one of the worst North American truck markets in recent history and the overall hardship of the U.S. economy. We must look at ways to continue our forward momentum around customers, new products and growth opportunities.”
Within its North American Truck Operations, customers in Navistar’s core markets in North America will be served by a team with a singular focus on products, operations and sales for the U.S., Canada and Mexico. An array of new fuel efficient products are setting new standards in the industry from the International ProStar and LoneStar long-haul trucks to diesel hybrid medium trucks and more innovations are coming.
Customers of Navistar’s Global Truck Operations, outside of North America, will see products developed specifically for their unique needs by a team focused on global product development, sales and operations. These efforts will include expanding Navistar’s export operations and further development and implementation of Navistar’s joint venture with Mahindra as well as a proposed joint venture with Caterpillar.
Global Bus Operations will lead all commercial and school bus product development, operations and sales throughout the world. For instance, a subsidiary of Navistar based in Mexico and a Brazilian bus body builder are exploring a joint venture to manufacture commercial bus bodies to be distributed as commercial integrated buses through the IC Bus Dealer channel beginning in 2009. In addition, the Bus team is delivering school buses to First Student as part of an agreement valued at up to $1.2 billion for CE Series school buses through 2010, with an option to provide additional buses through 2012.
As a sustainable $2 billion annual business, Navistar Defense will continue its success converting commercial truck platforms, engines and components into specialized vehicles for the U.S. military and allied countries. In 2005, Navistar re-established its place in the defense sector and quickly emerged as one of the Top 100 defense contractors in the U.S. highlighted by its MaxxPro Mine Resistant Ambush Protected (MRAP) vehicle and Medium Tactical Vehicles (MTV) built off the International WorkStar truck platform.
Over the next two months, Navistar said it will provide further definition of the new organizational structure, along with the appointment of executives. Some targeted job reductions will also take place, as functions are consolidated and streamlined to align with market conditions.