|Founded||Chicago, Illinois (1902)|
|Key people||Daniel C. Ustian, Chairman, President & CEO|
Buses and schoolbuses,
|Revenue (turnover)||$9.713 billion USD (2004)|
Navistar International Corporation (formerly International Harvester Company) is a manufacturer of International brand commercial trucks, MaxxForce brand diesel engines, IC Bus brand school 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.
Headquartered in Lisle, Illinois, Navistar has 16,500 employees and an annual revenue of $10.775 billion (in 2013). 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.
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 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 began exiting many of its business sectors in an effort to survive; in the process, it shed most of its operating divisions: Construction Equipment Division to Dresser Industries; Solar Division (gas turbines) to Caterpillar; Cub Cadet (lawn and garden equipment) to MTD Products and, lastly, the Agricultural Division to Tenneco who merged it with their J.I. Case subsidiary.
After the Agricultural Division 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 which 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 agricultural, construction 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 school buses. The company purchased one-third of American Transportation Corporation (AmTran), an Arkansas-based manufacturer in 1991, and 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 rebranded 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 its corporate offices to west suburban Warrenville, Illinois. The company's Melrose Park, Illinois plant is notable for a significant workplace shooting on February 5, 2001.
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.
In 2005, Navistar purchased the Workhorse company (started in 1998 by investors who took over production and sales of General Motors’ popular Chevrolet P-series Stepvan chassis when GM dropped it), a manufacturer of step-van and motor home chassis, to seemingly re-enter the delivery van market. It appeared that the new subsidiary might also benefit by its association with a company whose history from the 1930s into the '60s included the popular Metro van. For a short time Workhorse offered an integrated chassis-body product called Workhorse MetroStar. In Sept. of 2012, Navistar announced the shut down of Workhorse and the closure of the plant in Union City, Indiana, USA in order to cut costs.
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 P 5 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. 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.
CEO 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 had received during the restatement period, the SEC said. Four other company executives paid civil penalties without admitting liability.
In December 2014, Navistar disclosed more accounting problems. These involved out-of-period adjustments, which were corrections of prior period errors relating to product warranties. This resulted in a $36 million increase in Cost of Products Sold. In addition, a material weakness was disclosed. In the company's annual 10K, they reported that weakness was "surrounding validation of the completeness and accuracy of underlying data used in the determination of significant accounting estimates and accounting transactions. Specifically, controls were not designed to identify errors in the underlying data which was used to calculate warranty cost estimates and other significant accounting estimates and the accounting effects of significant transactions. CEO 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 had received during the restatement period, the SEC said. Four other company executives paid civil penalties without admitting liability.
In December 2014, Navistar disclosed more accounting problems. These involved out-of-period adjustments, which were corrections of prior period errors relating to product warranties. This resulted in a $36 million increase in Cost of Products Sold. In addition, a material weakness was disclosed. In the company's annual 10K, they reported that weakness was "surrounding validation of the completeness and accuracy of underlying data used in the determination of significant accounting estimates and accounting transactions. Specifically, controls were not designed to identify errors in the underlying data which was used to calculate warranty cost estimates and other significant accounting estimates and the accounting effects of significant transactions.
In October 2003, Navistar CEO Dan Ustian announced the company would be forming a defense business unit in order to sell military vehicles. Navistar Defense would be led by Archie Massicotte, a 26 year veteran of the company. Ustian stated "This is a natural area of growth for International. We already have all the platforms that the U.S. military and other NATO countries could leverage for products and services."
Navistar Defense LLC 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 U.S. Army ordered 2,900 7000-MVs for the Afghan National Army and Iraqi Ministry of Defense and an additional order of 7,000 was added in 2008.
Navistar Defense also has a small Canadian branch, named Navistar Defence Canada.
Navistar Defense reported sales of $3.9 billion in 2008 and $2.8 billion in 2009.
In October 2009, the company entered into a strategic agreement with Czech-based company Tatra to jointly develop, produce and market new military vehicles. 
In December 2009, analysts were skeptical of the company's long-term potential. "Navistar came out of nowhere and became a big player with MRAP, in what was a short-term program," said Dean Lockwood, an analyst at Forecast International Inc., a Connecticut-based defense consultant. "They didn't prove themselves to be a long-term major player."
In 2010, Navistar Defense's sales were $1.8 billion. The company's 2010 Annual 10K report stated "we continue to expect that over the long term our military business will generate approximately $1.5 billion to $2 billion in annual sales."
In 2011, Navistar Defense's sales were $2.0 billion.
In 2013, Navistar Defense reported $543 million in sales. In the company's 10K filing, they projected military sales to continue to decline, citing U.S. budgetary constraints.
In 2014, Navistar Defense reported $149 million in sales. The company projected 2015 military sales to be slightly higher due to recent contract awards relating to the government's MRAP fleet.
Contract awards, losses and other events
On August 22, 2012, Navistar Defense lost their bid for the Engineering, Manufacturing & Development (EMD) contract worth $187 million for the Army and Marine Corps' Joint Light Tactical Vehicle (JLTV) program. Navistar had proposed its Saratoga vehicle for the competition. On Friday August 28, 2012, Navistar filed a protest with the Government Accountability Office (GAO), but pulled their protest on Tuesday, September 4, 2012.
On June 20, 2013, Navistar Defense idled production at their West Point, MS production plant. 80 workers were notified that July 5, 2013 would be their last day. West Point was best known for manufacturing MRAP vehicles. The company cited sequestration, the drawdown in Afghanistan and a challenging environment in the defense industry as factors.
On August 22, 2013, Navistar Defense lost their bid for the Ground Mobility Vehicle (GMV) 1.1 contract, potentially valued at $562 million. Navistar had proposed its Special Operations Tactical Vehicle (SOTV) for the competition. On Tuesday September 1, 2013, Navistar Defense and AM General filed a protest. On December 19, 2013, the Government Accountability Office (GAO) denied Navistar and AM General's protests.
In January 2014, the Pentagon announced they had notified allies of their intent to give away or scrap 13,000 used MRAPs. This was due to the war in Afghanistan winding down, the military wanting a lighter vehicle and high cost to ship them from the middle east back to the U.S. Recipients have included various police departments and some universities. Navistar Defense built 9,000 of the 27,000 vehicles bought by the Pentagon. Giving away the MRAPs was seen as a blow to Navistar Defense's parts sales. 
In December 2014, Navistar Defense lost their bid for the Engineering, Manufacturing Development (EMD) contract for the Armored Multi-Purpose Vehicle (AMPV). BAE was awarded the $382 million contract on December 23, 2014.
Navistar Defense is currently competing for Canada's Department of National Defence (DND) MSVS (Medium Support Vehicle System) Project - SMP (Standard Military Pattern) vehicles contract. They have proposed their ATX8 vehicle as part of an agreement with Czech-based company Tatra. The contract is for acquisition and in-service support (ISS) of a fleet of up to 1,500 SMP vehicles, up to 150 Armour Protection Systems (APS) kits, and 300 Load Handling System (LHS) trailers.  Competitors include Oshkosh (MTVR), BAE Systems (FMTV), Daimler AG (Zetros), Renault Trucks (Kerax 8x8) and Rheinmetall/ MAN (HX77 8x8). A contract award decision is expected in June 2015. 
On July 25, 2014, the DOD awarded a $27.6 million modification to an existing contract to acquire mine-resistant, ambush-protected hardware kits to upgrade MaxxPro Dash and long-wheel base ambulances to their final configuration. Estimated completion date is May 30, 2015.
On August 27, 2014, the DOD awarded a $38 million contract to Navistar Defense to restore MRAP Maxx Pro Dash vehicles to "like-new" standards. The DOD reported that Navistar was the only bidder. The work includes adding independent suspension systems and replacement of mandatory parts, with an estimated completion date of June 30, 2016.
In September 2014, Navistar Defense announced they would hire 200 workers and re-open operations at their West Point, MS production plant. West Point had been idle since June 2013 due to sequestration, the drawdown in Afghanistan and declining orders.
In September 2014, amidst numerous divestitures, Navistar Inc. CEO Troy Clark gave Navistar Defense a vote of confidence, noting that the military business unit would be retained. In a September 2014 interview with Reuters he said "it's not a billion-dollar growth opportunity, but it's not something that’s bleeding off the future fortunes of our company."
On October 14, 2014, Navistar Defense was awarded a $9.2 million firm-fixed price foreign military sale (FMS) contract to Jordan for one hundred 4-ton 4x4 cargo trucks and twenty days of operator and maintenance training. Work will be performed in New Carlisle, Ohio with an estimated completion date of May 20, 2015. Bids were solicited via the internet with nineteen received.
2001-Present: Failed engine strategy, layoffs, consolidation and turnaround
Failed Engine Strategy
In 2001, then CEO Dan Ustian faced numerous EPA regulations to reduce the amount of nitrogen oxides and soot emanating from diesel engines. Despite the change in the compliance arena, the regulations would not begin to be phased in until 2007, with full implementation slated for 2010.
Ustian had multiple engineering paths available. Among them were Selective Catalytic Reduction (SCR), Exhaust Gas Recirculation (EGR) or the use of nitrogen oxide absorbers. All required more engineering and development to achieve compliance. Ustian believed truckers did not want to bother with an extra tank of fluid aftertreatment. As a result, he convinced the company to spend $700 million to fund EGR development.
On October 31, 2007, Navistar formally announced their intent to move forward with EGR as the company's strategy. The company statement included Ustian mentioning “I have publicly been an advocate of customer friendly emissions control solutions which do not add additional costs to our truck and bus customers. While SCR is a means to achieve the NOx reduction requirement for 2010, it comes with a steep cost to our customers. Our ability to achieve our goals without adding customer cost and inconvenience is a competitive advantage for International.”
On November 24, 2008, Navistar revealed it would use EPA Credits in order to comply with the 2010 legislation.
In February 2009, Ustian touted the benefits of EGR technology as a key differentiator for the company's engines. However by now, the rest of the industry had chosen to use the compliant SCR technology. Ustian disagreed with SCR, saying "the other thing that EGR avoids is the risks of an SCR strategy. Read the label on this and it will show you that there are challenges with keeping control of using this technology: ‘Store between 23 degrees and 68 degrees.’ So essentially it says you can’t throw it outside. You can’t operate it in conditions above 85 [degrees] or below 12 [degrees]. You can, but, it will put the burden onto the customers.” 
The EPA recognized Navistar's imminent non-compliance and created a system of Non-Conformance Penalties (NCPs) that included a $1,919 dollar fine for every non-compliant engine that Navistar sold. To bridge the gap, Navistar began using EPA credits it had previously earned for being compliant in lieu of paying fines. In August 2012, Navistar stated they would run out of EPA credits soon. Only days earlier the EPA announced increased new penalties of $3,744 per engine.
In March 2009, Navistar sued the EPA, claiming that the agency’s guidance documents for SCR implementation were invalid because they were adopted without a public process and with input only from the SCR engine makers. Navistar and the EPA settled the lawsuit a year later.
Further masking the EGR problem were high military sales. In the company's 2010 10K report, Navistar cited orders for MRAPs as offsetting flat commercial sales due to the recession.
In 2011, Navistar began phasing out its Truck Development and Technology Center (TDTC) in Fort Wayne, Indiana. In early December 2011, the company laid off 130 employees, mostly engineers and designers who were United Auto Workers members. In total, 300 out of 1,400 Fort Wayne employees eventually accepted offers to relocate to Illinois. The other 1,100 workers either retired or chose to remain in Indiana and find work elsewhere. The cost to move employees and consolidate operations was estimated to be $75 million. The only Navistar employees remaining after December 2012 will be 20-25 people manning the company’s test track on Oxford Street.
In January 2012, the EPA adopted an interim final rule that allowed Navistar to continue selling the engines subject to NCPs. Several Navistar competitors sued, and in June 2012 the same appeals court ruled that EPA’s interim rule was invalid because it did not give the public notice and an opportunity for comment.
In June 2012, speculation mounted about a possible takeover of the struggling truck maker. This came as hedge fund MHR Fund Management LLC disclosed a 13.6% stake in the company, slightly higher than billionaire activist investor Carl Icahn's 11.9% stake. As a result, Navistar adopted a poison pill defense. If the plan were triggered by an outside investor taking a stake of 15 percent or more in the company, then Navistar would issue its shareholders rights that would let them buy new common stock in the company at a discount of 50 percent: For each share held, the investor could buy $280 worth of new shares for $140. The investor who took the 15 percent stake or more would not have the right to buy additional shares.
In August 2012, Navistar announced it would use Cummins engines and SCR technology. After 37 years with the company, Dan Ustian retired immediately in August 2012 and left his position on the board as well. Former Textron CEO Lewis Campbell was named interim CEO and Troy Clarke was promoted to Chief Operating Officer.
In a September 2012 interview, Cummins CEO Tom Linebarger said, "all we did was act nice to them (Navistar) even when they didn't talk nicely about us," he smiled, recalling harsh comments that Navistar executives had made about SCR being used by all its competitors.
In October 2012, Chief Product Officer Deepak Kapur stepped down, followed by Group Vice President of Product Development Ramin Younessi in December 2012. CIO Don Sharp also left the company in April 2013.
In February 2017, Volkswagen Truck & Bus purchased 16.6% in Navistar to establish a "wide-ranging strategic alliance". As part of the deal, a new joint venture with VW Trucks is being formed, Global Truck & Bus Procurement LLC, which will handle purchases and seek to cut procurement costs across the various truck and bus brands: Volkswagen Truck & Bus's Scania, MAN and Volkswagen Caminhões e Ônibus, in addition to Navistar's own International Trucks and IC Bus brands.
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 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)
IC Bus has introduced concept vehicles in both 40 feet (12 m) and 45 feet (14 m) lengths.
- "DV" (1966-1974) V8 Diesel, Direct Injection
- DV 462 - 7.6 L (1966-1971)
- DV 550 - 9.0 L (1966-1970)
- DV 550B - 9.0 L (1971-1974)
- "D Series" (1975-early 1980) 9.0 L (549 CI) V8 Diesel, Direct Injection
- D 150
- D 170
- D 190
- "DV" (1966-1974) V8 Diesel, Direct Injection
- 1980–1987 9.0 L (551 CI) Direct-Injection V8
- 1983–1987 6.9 L IDI (Indirect Injection) V8 (Ford)
- 1988–1994 7.3 L IDI (Indirect Injection) V8 (Ford)
- 1994–2003 T444E (Original turbocharged Navistar T444E PowerStroke)
- 7.3 L V8
- 2003–present VT365/PowerStroke (Ford)
- 6.0 L
- 6.4 L (MaxxForce 7)
- "PLN" Pump Line and Nozzle, Direct Injection
- DT 360 - 5.9 L
- DT 466 - 7.6 L
- "NGD" (1994–1997) New Generation Diesel, PLN, DI
- DT 408 - 6.7 L
- DT 466 - 7.6 L
- HT 466 - 7.6 L
- DT 530 - 8.7 L
- HT 530 - 8.7 L
- "HEUI" Hydraulic Electric Unit Injector, Direct Injection (1994 - up)
- DT 466 - 7.6 L
- HT 466 - 7.6 L
- DT 530 - 8.7 L
- HT 530 - 8.7 L
- DT 570 - 9.3 L
- HT 570 - 9.3 L
- "PLN" Pump Line and Nozzle, Direct Injection
- VT 275 - 4.5 L (MaxxForce 5)
- MaxxForce Brand Truck, Bus and RV Engines (2007 - )
- MaxxForce 5 - 4.5 L V-6
- MaxxForce 7 - 6.4 L V-8
- MaxxForce DT - 7.6 L I-6
- MaxxForce 9 - 9.3 L I-6
- MaxxForce 10 - 9.3 L I-6
- MaxxForce 11 - 11.0 L I-6
- MaxxForce 13 - 13.0 L I-6
Note: International Truck and Engine recently launched the MaxxForce brand name for their current line of Diesel engines. All current engines will be branded as "MaxxForce" followed by a number corresponding to the engine's displacement, rounded up. So the 4.5 L VT275 becomes the "MaxxForce 5". Ford will continue to use the Power Stroke brand name on their International engines.
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. The relationship started out as an engine-sharing deal, but evolved into the production of entire vehicles. However, in May 2014, Ford cut Navistar out of the business of the F-650 and F-750 commercial trucks. Navistar had built them for Ford since 2001. Beginning in 2015, Ford plans to start making the trucks themselves. It is approximately a $400 million a year business.
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 (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). Unlike GM, which developed its own diesel engine (from subsidiary Detroit Diesel), Ford kept down development costs by adapting an existing engine. Ford entered into a supply agreement with International Harvester to receive its 6.9L IDI V8 engine. The first diesel-powered Ford pickup trucks (all ¾ and 1-ton models) debuted for 1982.
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 390 hp and 735 ft-lb of torque. Later in 2011, Ford tweaked the engine to deliver best-in-class 400 hp and 800 ft-lb of torque.
Blue Diamond Truck
In 2001, Navistar formed a joint venture with longtime (20 years) customer Ford Motor Company to manufacture medium-duty trucks and parts including diesel engines for both parent companies. The new company, Blue Diamond Truck Co. LLC, operates in the Navistar plant in General Escobedo, Mexico . Its first products were the 2004 Ford F-650 and F-750 medium-duty trucks.
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. In May 2018, it was announced that Cummins was buying out Navistar's equity in the joint venture.
- Main article: Mahindra Navistar
Navistar formed a joint venture with Mahindra & Mahindra to build heavy trucks in India under the Mahindra International brand, which has since been renamed Mahindra Navistar. These Trucks were displayed at Auto Expo 2010 in Delhi, India
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) The vehicles appear to be based on Tatra T815-7 (T817) 6x6, 8x8 chassis(see pics here) , suspension and cabins while using Navistar engines and other componets. 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.
In 2009, Navistar and Caterpillar announced the formation of a new 50/50 joint venture to be called NC2 Global. Based in Chicago, Illinois, USA, this company is to "develop, manufacture and distribute commercial trucks globally, outside North America and India" under the International and Cat brands.
On 16 September 2010, Anhui Jianghuai Automobile Co., Ltd. (JAC) announced a joint venture with NC2 Global (itself a Navistar-Caterpillar joint venture) to develop, build, and market heavy duty trucks in China.
- 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.
- Navistar entered into an agreement to purchase General Motors' medium duty truck unit in 2007, but because of changing market conditions the purchase was not concluded.
Plug-in hybrid electric bus
The U.S. Department of the Energy announced the selection of Navistar Corporation for a cost-shared award of up to US$10 million to develop, test, and deploy plug-in hybrid electric vehicle (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 that can be recharged from standard electrical outlets. 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) range. Travel beyond the 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.
eStar electric van
The eStar is an all-electric van manufactured in Wakarusa, Indiana, USA. Production began in March 2010 and first deliveries began two months later. The technology used in eStar was licensed to Navistar in 2009 in a joint venture with Modec and Navistar bought the intellectual property rights from the Modec's bankruptcy administrators in 2011. The introduction of the eStar was supported by a US$39.2 million U.S. Department of Energy stimulus grant under the 2009 American Recovery and Reinvestment Act.
The eStar has a 5,100 lb (2,300 kg) payload capacity and is available with a 14- or 16-foot cargo box. The vehicle is powered by a 70 kW 102 hp electric motor powered by an 80kWhr lithium-ion battery pack supplied by A123 Systems, and also uses regenerative braking. The electric van has a range of 100 mi (160 km), and a full charge takes between 6 to 8 hours. By May 2010 the eStar had received U.S. Environmental Protection Agency (EPA) and CARB certifications. The eStar also meets all Federal Motor Vehicle Safety Standards (FMVSS).
The first vans were delivered in May 2010 to FedEx Express for use in Los Angeles. Other customers include Pacific Gas and Electric Company (PG&E), The Coca-Cola Company, and Canada Post. The eStar has a price of US$150,000.
In December 2011, the nonpartisan organization Public Campaign criticized Navistar International for spending $6.31 million on lobbying and not paying any taxes during 2008-2010, instead getting $18 million in tax rebates, despite making a profit of $896 million and increasing executive pay by 81%. On Jan 31, 2005, Navistar Financial said it would restate financial statements for fiscal years 2002 and 2003 and the first three quarters of fiscal 2004, because it did not take into consideration potential changes to future income. On April 7, 2006, Navistar restated financial results from 2002 through 2004, and for the first three quarters of 2005, due to accounting practices that are the subject of a continuing review.
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