Warrenville, Illinois – Navistar International has announced it will close an engine plant and casting foundry in Indianapolis, Indiana, as a result of changes in its business relationship with Ford, the primary customer for the two facilities.
Ford and Navistar previously announced an end to their diesel engine supply agreement. Navistar intends to close the Indianapolis facilities as of July 31, 2009.
“This is a difficult decision because of the impact it has on our employees and the community where we live and work,” said Eric Tech, vice-president and general manager of Navistar Engine Group. “But the significant change in Ford’s business plans has forced us to make this decision.”
Navistar will continue to produce diesel engines for Ford through 2009, and will continue to collaborate on a range of initiatives, including the two companies’ existing Blue Diamond Truck and Parts joint ventures, and their diesel engine supply agreement in South America.
“Over the past 30 years, Ford and Navistar dominated the diesel-powered, heavy-duty pickup truck market, providing value to both companies’ customers and shareholders,” Tech said. “While this phase of our relationship will end, we look forward to continuing to work together through our existing joint ventures and South American partnership.”
Navistar said it has continued to ensure the viability of its engine business through various diversification efforts, including expansion into China and India, the introduction of the MaxxForce 11/13, and recently-announced plans to produce a proprietary 15-litre engine.