Navistar Plans to Close Texas Truck Plant to Pare Costs
Navistar International Corp. (NAV), the truckmaker trying to end losses, said it plans to close a Texas factory next year.
Navistar said the the shutdown will reduce operating costs by $25 million to $35 million annually. The Garland, Texas, factory employs about 900 people, the Lisle, Illinois-based company said in a statement.
Navistar’S four largest investors hold about 50 percent of the shares, including a 14.95 percent stake held by Carl Icahn. Navistar averted a proxy fight this month with Icahn by agreeing to accept three new directors.
The company said production at the Texas plant will be shifted to other North American factories building similar models starting in January. The Garland plant will close in the first half of next year. Navistar also said it expects to record pretax costs of no more than $10 million for benefits to employees who lose their jobs and other costs in fiscal 2013 of $30 million to $50 million.
The company’s shares have tumbled 51 percent this year to $18.51 through Oct. 26, the last day before Hurricane Sandy caused New York trading to be suspended.
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