Navistar International

Navistar International Corporation

Type	Public NYSE: NAV
Industry	Automotive
Founded	Chicago, Illinois (1902)
Headquarters	Warrenville, Illinois Relocating to Lisle, Illinois
Key people	Daniel C. Ustian, Chairman, President & CEO Steven K. Covey, Senior Vice President and General Counsel
Products	Trucks Buses and School buses, Diesel engines Chassis
Revenue	$9.713 billion USD (2004)
Employees	14,800
Website	www.navistar.com

Navistar International Corporation (NYSE: NAV) (formerly International Harvester Company) is a United States-based holding company that owns the manufacturer of International brand commercial trucks, MaxxForce brand diesel engines, IC Bus school and commercial buses, Workhorse brand chassis for motor homes and step vans, and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company is also a provider of truck and diesel engine parts and service.

The current record shows headquarter located in Warrenville, IL with employee size 250 - 499 and has annual revenue of $9.713 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 and more than 60 dealers in 90 countries throughout the world. The company also provides financing for its customers and distributors principally through its wholly owned subsidiary, Navistar Financial Corporation.

History

The merger of McCormick Harvesting Machine Company and the Deering Harvester Company in 1902 resulted in the formation of the International Harvester Company (IH) of Chicago, Illinois, which over the next three quarters of a century evolved to become a diversified manufacturer of farming equipment, construction equipment, gas turbines, trucks, buses, and related components. During World War II, International Harvester produced the M-series^{[citation needed]} of military trucks that served the Marine Corps and the U.S. Navy as weapons carriers, cargo transporters and light artillery movement. Today, Navistar produces International brand military vehicles through its affiliate Navistar Defense.

1986-1991: Transition from Agricultural Roots

International Harvester fell on hard times during the poor agricultural economy in the early to mid-1980s and the effects of a long strike with the UAW over proposed work rule changes. IH's new CEO,Donald Lennox directed the management organization to begin exiting many of its IH's historical business sectors in an effort to survive. Some of the sales of profitable business endeavors were executed to raise cash for short-term survival, while other divisions were sold due to lack of immediate profitability. During this period of questionable economic survival in an effort to raise needed cash and to reduce losses the management team lead by Mr. Lennox at IH shed many of its operating divisions: Construction Equipment Division to Dresser Industries; Solar (gas turbines) Division to Caterpillar; Cub Cadet (lawn and garden equipment) to MTD Products and, lastly, the Agricultural Division to Tenneco who merged it with their JI Case subsidiary. The Scout & Light Truck Parts Business was sold to Scout/Light Line Distributors, Inc. in 1991.

After the Ag sale in 1985, all that remained of IH was the Truck and Engine Divisions. The company changed its name in 1986 to Navistar International Corporation. (The International Harvester name and IH logo were assets of the Agricultural Division and consequently were part of the sale to Tenneco; the IH name and logo are still in use being incorporated into the Case IH brand name). In the early 1980s, IH developed a series of reliable large-displacement V8 diesel engines that were sold as an option for heavy-duty Ford 3/4-ton and 1-ton pickup trucks.

Navistar still uses the International brand in its diesel engine and truck product lines and the brand name continues on in product lines of Navistar International's International Truck and Engine Corporation subsidiary.

1990s-early 2000s: Rediversification

During the 1980s and 1990s, the popularity of diesel engines had made Navistar a leading manufacturer of bus chassis, particularly that of school buses. In 1991, the company purchased one-third of American Transportation Corporation (AmTran), an Arkansas-based manufacturer. Navistar purchased the remaining two-thirds in April 1995. By becoming both a body and chassis manufacturer at the same time, Navistar gained significant market share in the industry. In 2002, AmTran was re-branded as IC (Integrated Coach) after a few months as International Truck and Bus.

After nearly a century of business in Chicago, Navistar announced its plans on 30 September 2000 to leave the city and relocate their corporate offices to west suburban Warrenville, Illinois.^[1] The company's Melrose Park, Illinois plant is notable for a significant workplace shooting on February 5, 2001.^[2]

International MXT, the "smallest" of the XT pickup trucks.

In 2004, Navistar re-entered the retail vehicle market for the first time since 1980. The International XT (Extreme Truck) pickup truck was a series of three pickup trucks. It was (by far) the largest pickup truck available for retail sale and two of the three versions (the CXT and RXT) were essentially International Durastar medium-duty trucks fitted with pickup beds. The third version (the MXT) was essentially a street-legal version of a Navistar-designed military vehicle. The three XT trucks were sold until 2008.

2006-2008: Accounting Issues

In January 2006, the company declared it would not file its form 10-K annual report with the U.S. Securities and Exchange Commission on time. The delay was caused by the disagreement with its auditors, Deloitte and Touche, over complex accounting issues. In April, Navistar fired Deloitte, its independent auditor for 98 years, and hired KPMG to help restate earning back to 2002 in order to fix accounting errors. On December 15, 2006, Navistar executives announced further delay of its restatement and 2006 results. The announcement prompted the NYSE to announce the delisting of the company, after 98 years of trading, although the NYSE subsequently delayed the delisting pending an appeal by Navistar. However, Navistar was removed from the S&P 500 Index, and the NYSE eventually denied Navistar's appeal and delisted the stock; it traded on the Pink Sheets until 30 June 2008, when it was re-listed on the NYSE, under its previous ticker symbol, NAV, after catching up with its filings.^[3] Christopher Anderson, the Deloitte partner responsible for the 2003 audit, accepted a one-year suspension from public audits in 2008, and became the first individual to be fined by the PCAOB.^[4]. Chief Executive Officer Daniel Ustian agreed to surrender to Navistar shares worth $1.3 million, while former Chief Financial Officer Robert C. Lannert consented to repay $1.05 million, each sum reflecting monetary bonuses they’d received during the restatement period, the SEC said. Four other company executives paid civil penalties without admitting liability.

Present day: Hybrids, Defense

International MaxxPro MRAP

In 2007, Navistar's International Truck and Engine Corporation is the first company to enter hybrid commercial truck production, with the International DuraStar Hybrid diesel-electric truck.^[5]

Navistar is the prime supplier of MRAP armored vehicles to the US military. The Navistar 7000 series has been fielded by the Canadian Forces for domestic operations. In 2005, the US Army ordered 2900 7,000-MV for the Afghan National Army and Iraqi Ministry of Defense and an additional order of 7,000 was added in 2008.

Brands

International Trucks

International DuraStar

International Trucks dealership Ypsilanti, Michigan

In 1986, after the transition from International Harvester to Navistar, the truck product line (essentially all that was left) dropped the "Harvester" portion of the brand name. Based in Warrenville, Illinois, International produces a variety of medium-duty, over-the-road, and severe-service trucks.

Medium Duty

• International TerraStar Class 4-5 conventional
• International CityStar LCF (low-cab forward) cab-over
• International DuraStar Class 6-7 conventional

Class 8

• International LoneStar conventional
• International ProStar+ conventional
• International 9000 Series conventional
• International TranStar conventional

Severe-service

• International PayStar conventional
• International WorkStar conventional

IC Bus

Further information: IC Bus and AmTran

IC Bus BE-Series school bus

International has a long history in the school bus industry as a chassis provider, dating back to when school buses first became motorized. In 1991, Navistar entered the school bus industry as a body manufacturer when it began its acquisition of AmTran, an Arkansas-based company founded as Ward Body Works in 1933. Today, IC Bus (IC is an acronym for Integrated Coach) produces several models of full-sized school school buses along with buses for commercial use.

School/activity buses

• AE-Series cutaway-cab conventional (based on International TerraStar)
• BE-Series conventional (International 3300LP chassis)
• CE-Series conventional (International 3300 chassis)
  • available in diesel-electric hybrid configuration
• RE-Series rear-engine transit-style (International 3000 chassis)

Commercial buses

Along with commercial-use derivatives of the school bus product lines, IC offers these distinct products:

• AC-Series cutaway cab (based on International TerraStar)
• HC-Series cutaway cab (based on International DuraStar)
  • available in diesel-electric hybrid configuration
• LC-Series low-floor cutaway cab (based on International DuraStar LP)

Motorcoaches

IC Bus has introduced concept vehicles in both 40 feet (12 m) and 45 feet (14 m) lengths.^[6]

International Harvester/Navistar Diesel engines

Further information: List of International Harvester/Navistar engines

International Truck and Engine recently launched the MaxxForce brand name for their current line of Diesel engines. Current engines were re branded as "MaxxForce" followed by a number corresponding to the engine's displacement, rounded up. So the 4.5L VT275 became the "MaxxForce 5". Ford continued to use the Power Stroke brand name on their International-sourced engines.

Joint Ventures

Ford Motor Company

See also: Ford Power Stroke engine and Ford F-650

Since the 1980s, Navistar has had a close relationship with Ford Motor Company. Initially, the relationship started out as an engine-sharing deal, but evolved into the production of entire vehicles.

Ford F-650, a product of Blue Diamond Truck.

Ford PowerStroke Diesel

As a result of the gas crises of the 1970s, big-block gasoline V8 engines (such as the Ford 460) had begun to fall out of favor with pickup-truck buyers. In the 1980s, diesel engines in American pickup trucks (introduced by General Motors in 1978) had become popular, as they offered the power of a big-block V8 with the fuel economy of a small-block V8 (if not a six-cylinder). Ford entered into a supply agreement with International Harvester to receive its 6.9 L IDI V8 engine. The first diesel-powered Ford pickup trucks debuted for 1982; it was available for ¾ and 1-ton models. Competitors such as Chrysler's Dodge division (which uses a Cummins six-cylinder) and General Motors (which now uses an Isuzu-engineered engine) also have diesels that they use in their ¾ ton and 1 ton models.

In 1994, when the International 7.3 L IDI V8 was replaced by the T444E, the diesel option was branded "Ford PowerStroke" to emphasize the switch to direct injection. Throughout the 1990s and 2000s, Ford offered International/Navistar V8 (as the DT inline-6 was far too large to package in a pickup truck) in the Ford Super Duty pickup trucks. As of 2010 the 6.4 L Ford PowerStroke V8 was the last of the International/Navistar diesels used in Ford's F-Series Super Duty lineup. When Ford redesigned the Super Duty in 2011, it was fitted with a 6.7 L V8 designed and produced by Ford. During its first release, the Powerstroke produced 390hp and 735ft-lb of torque. Later on in 2011, Ford tweaked the engine to deliver best-in-class 400hp and 800ft-lb of torque.

Blue Diamond Truck

In 2001, Navistar formed a joint venture with longtime (20 years) customer Ford Motor Company^[7] to manufacture medium-duty trucks and parts including diesel engines for both parent companies. The new company, Blue Diamond Truck Co. LLC,^[8] operates in the Navistar plant in General Escobedo, Mexico .^[9] Its first products were the 2004 Ford F-650 and F-750 medium-duty trucks.^[10]

Anhui Jianghuai Navistar

On 16 September 2010, Anhui Jianghuai Automobile Co., Ltd. (JAC) announced joint ventures with NC2 Global and Navistar International Corporation that will develop, build, and market heavy duty trucks and diesel engines in China.^[11]

Mahindra Navistar

Main article: Mahindra Navistar

Mahindra Navistar MN25

Navistar formed a joint venture with Mahindra & Mahindra to build heavy trucks in India under the Mahindra International brand,^[12] which has since been renamed Mahindra Navistar.^[13] These Trucks were displayed at Auto Expo 2010 in Delhi,India

Tatra

File:T138 podvozok.jpg

Tatra T138 backbone tube chassis (This is old model, shown for illustration of the concept only)

Tatra and Navistar Defence introduced at Eurosatory Exposition in Paris, France (Jun 14-18 2010) the results of their strategic alliance since October 2009, the models ATX6 (universal container carrier) and ATX8 (troop carrier)^[14] The vehicles appear to be based on Tatra T815-7 (T817) 6x6, 8x8 chassis(see pics here) ,^[15] suspension and cabins while using Navistar engines and other componets.^[16] Under the deal Navistar Defence and Tatra A.S. will market the vehicles in North America, which includes sales to the United States military and foreign military sales financed by the United States government. Tatra will source parts and components through Navistar’s global parts and support network for Tatra trucks delivered in markets outside of North America as well as market Navistar-Tatra vehicles around the world in their primary markets.

Others

• In 2005, Navistar purchased MWM International Motores, a Brazilian engine manufacturer formerly associated with Deutz AG.
• Navistar International has a contract with Budget Truck Rental to produce their rental trucks.^[17]
• Navistar entered into an agreement to purchase General Motors' medium duty truck unit in 2007,^[18] but because of changing market conditions the purchase was not concluded.^[19]

Plug-in hybrid vehicles

Main articles: Plug-in hybrid and hybrid electric bus

USDOE announced the selection of Navistar Corporation for a cost-shared award of up to $10 million to develop, test, and deploy plug-in hybrid electric (PHEV) school buses. The project aims to deploy 60 vehicles for a three-year period in school bus fleets across the nation. The vehicles will be capable of running in either electric-only or hybrid modes and will be recharged from a standard electrical outlet. Because electricity will be their primary fuel, they will consume less petroleum than standard vehicles. To develop the PHEV school bus, Navistar will examine a range of hybrid architectures and evaluate advanced energy storage devices, with the goal of developing a vehicle with a 40-mile (64 km) electric range. Travel beyond the 40-mile (64 km) range will be facilitated by a clean diesel engine capable of running on renewable fuels. The DOE funding will cover up to half of the project's cost and will be provided over three years, subject to annual appropriations.^[20]

Images

Navistar International Vehicles

2010 International LoneStar Tractor Trailer   IDF Custom International.   IC Bus CE300 school bus   International DuraStar medium-duty truck

See also

	Chicago portal
	Illinois portal
	Companies portal

• International Harvester
• List of International Harvester vehicles
• Odyne Corporation

References

1. ^ http://www.chicagobusiness.com/cgi-bin/news.pl?id=574
2. ^ Chicago Plant Rocked By Workplace Shooting
3. ^ Navistar files reports, will be relisted on NYSE: Financial News - Yahoo! Finance
4. ^ Deloitte Partner Disciplined Over Navistar Audit, CNN, October 31, 2008
5. ^ International Truck and Engine First Company to Enter Hybrid Commercial Truck Production, November 9, 2007, Fuerteventura Digital
6. ^ http://www.icbus.com/ICBus/Buses/Motorcoach/
7. ^ http://www.navistarengines.com/about-us-company-heritage.aspx
8. ^ http://fleetowner.com/mag/fleet_blue_diamond_formed/
9. ^ http://www.internationaldelivers.com/Site_Layout/Escobedo/Escobedo_plantInfo.asp
10. ^ http://driversmag.com/ar/fleet_ford_unveils_super/
11. ^ "JAC Partners with NC2, Navistar". ChinaAutoWeb.com. http://chinaautoweb.com/2010/09/jac-partners-with-nc2-navistar/. 
12. ^ The Hindu on Mahindra International,.
13. ^ http://www.motorindiaonline.com/2008/09/mahindra-international-is-now-mahindra.html
14. ^ "Navistar, Tatra unveil two tactical vehicles at Eurosatory". http://www.defenseworld.net/go/defensenews.jsp?n=Navistar,%20Tatra%20unveil%20two%20tactical%20vehicles%20at%20Eurosatory&id=4632. Retrieved 27 Jun 2010. 
15. ^ "Navistar-Tatra-ATX8-8x8-truck-system". http://www.deagel.com/library/Navistar-Tatra-ATX8-8x8-truck-system_m02010061500047.aspx. Retrieved 27 Jun 2010. 
16. ^ "Navistar Defense and Tatra’s ATX6 at Eurosatory". http://www.tatraworld.nl/2010/06/27/navistar-defense-and-tatras-atx6-at-eurosatory/. Retrieved 27 Jun 2010. 
17. ^ Company Info - Budget Truck Rental
18. ^ GM to sell its Medium Duty Truck Unit
19. ^ GM and Navistar Allow Medium Duty Truck MOU to Expire, Aug 20, 2008 press release
20. ^ http://apps1.eere.energy.gov/news/news_detail.cfm/news_id=12463

External links

Official Navistar Sites

• Navistar
  • International Trucks
  • MaxxForce
  • Navistar Financial
  • Navistar Defense
  • IC Bus
  • Navistar Engine Group
  • MWM International Motores
  • Navistar Electronics
  • Navistar Parts
  • Certified Pre-Owned Trucks
  • Mahindar Navistar
  • Workhourse Custom Chassis
  • Monanco RV
  • NC2 Global
  • International - Latin America
  • International - Southern Africa
  • eStar(tm) Electric Truck
  • International - China

Other Sites

• International Truck and Engine First Company to Enter Hybrid Commercial Truck Production.
• Scout Light Truck Parts website
• Diamond International Truck Company