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10/31/2012 4:00:00 PM Write a Letter to the Editor Write a letter to the Editor

Navistar to Close Texas Truck Plant

Navistar International Corp.

Navistar International Corp. said it will close its truck manufacturing plant in Garland, Texas, early next year, cutting 900 jobs as a result, to reduce costs.

Truck volume now produced at Garland will move to other North America operations that currently build similar models, beginning in January, Navistar said Tuesday.

The Garland plant primarily makes LoneStar, TranStar, WorkStar and PayStar heavy trucks, as well as military vehicles.

The closure is expected to reduce its operating costs by $25 million to $35 million annually, Navistar said, adding that it expects to take a $10 million fourth-quarter charge for employee separation costs.

New CEO Lewis Campbell said earlier this month that Navistar was considering closing some of its North American plants to cut costs.

After it announced it was closing a plant in Ontario, Canada, last year, Navistar said it had North American truck factories remaining in Garland; in Springfield, Ohio; and in Escobedo, Mexico.

Navistar said earlier this year that about 500 employees had accepted buyouts in the third quarter and that another 200 would probably be laid off in the fourth quarter, Reuters reported.

By Transport Topics

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