Navistar CEO Mulls Plant Closures
In an interview with Reuters, Navistar CEO Lewis Campbell said that the company may close some of its 19 North American facilities as part of an effort to reduce costs. The company, which is reducing its workforce by approximately 800 and scaling back on engineering costs by 28%, is currently looking at selling or closing some of its operations, according to CEO Lewis Campbell.
"We are now looking at what are the range of industry volumes that could come to us over time and what is the right footprint?" Campbell told Reuters. "More than likely we'll have to adjust our footprint. And we're ready to do that."
The company has lost $241 million through the first nine months of this fiscal year. Campbell said his focus in his first five weeks on the job since replacing longtime CEO Dan Ustian in late August, has been to reduce Navistar’s costs. To that end, he said that the company is currently making efforts to cut expenses by more than $150 million. That includes reducing the workforce through a combination of voluntary buyouts and layoffs as well as possibly selling some operations.
Navistar said it has identified operations that it could close or sell that could add $52 million to the profit line. Navistar Defense, the company’s military business unit, is not likely to be sold, Campbell said.