Navistar Closing Garland Plant

Posted on October 30, 2012

Navistar International Corp. announced that it intends to close its Garland, Texas, truck manufacturing operation as part of its efforts to reduce costs and optimize its manufacturing footprint. Navistar intends to cease operations at the Garland facility by the first half of 2013.

"Closing a facility is always difficult because of its impact on the many great people who’ve been part of our company," said Troy Clarke, Navistar president and chief operating officer. "But the fact is that Navistar has too much manufacturing capacity in North America and we must take quick action to improve our business and position the company for long-term success."

The Garland facility currently employs approximately 900 salaried, hourly and third party temporary workers. At the Garland site, Navistar manufactures severe service trucks such as the PayStar and WorkStar, the regional haul TranStar and the MaxxPro Mine Resistant Ambush Protected (MRAP) military vehicle. The vehicles now produced at Garland will transition to other North America operations that currently build similar models beginning in January 2013, Navistar said.

Once completed, the Garland closure is expected to reduce Navistar’s operating costs by $25-$35 million annually. The company will record a fourth-quarter 2012 charge, primarily for employee separation benefits, which is not expected to exceed $10 million on a pre-tax basis.