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Navistar looking to trim engine production

Jason Cannon April 5, 2013

Heavy-duty truck maker Navistar International Corp. is considering ways to consolidate engine production, Chief Operating Officer Troy Clarke told the Wall Street Journal

“We build engines in three places and none of them is fully utilized. You just can’t make any money doing that,” Clarke told the newspaper. “Underutilized manufacturing capacity is just a cost and it is a cost that we don’t have to bear.”

The company operates two engine plants in Huntsville, Ala., and another Melrose Park, Ill.

One of the Huntsville plants was opened as part of the company’s since-abandoned efforts to build a 15-liter engine. Last year, Navistar partnered with Cummins in developing a 15-liter engine.

Clarke did not provide The Wall Street Journal with specifics about plant closings or layoffs, adding a final decision likely wouldn’t be made for several months.

Navistar has already shuttered it’s Garland, Texas truck assembly plant, shifting production to plants in Escobedo, Mexico, and Springfield, Ohio.

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