Recently there has been one truck manufacturer that has dominated the business world headlines, Navistar. Unfortunately for the employees and stockholders of the company the news has been rather sour. Too keep thing simple here is a bullet list of the events that happened in the past month. Click on the links to read the full stories.
- CEO Dan Ustian retires
- EPA finalizes fines of $3,800 per non compliant engine
- Navistar’s JLTV vehicle no longer under consideration by Department of Defense
- Layoffs of 200 workers announced
- 3rd quarter profit falls 94%
- 18 Month operating plan revealed
Yikes, that’s a lot scary, gloomy news. Digging a little deeper into the 18 month operating plan it reveals that the company is analyzing every portion of non core North American truck manufacturing ventures. Does this mean Navistar Defense or patnerships with overseas firms like Mahindra are on the chopping block? Quite possibly but only time will tell. Also, Cummins engines will be available to customers in December which should help dealers and customers alike breath a little easier.
During this whole debacle take over rumors have abounded with the likes of Carl Icahn buying near controlling shares of Navistar stock. One global giant often rumored to be in the hunt for control of the International brand has been Volkswagen. However, current VW CEO Martin Winterkorn says the company’s recent buying spree (see Porsche, Ducati) is over.
Every the eternal optimist I believe this truck can be righted. The Cummins engine is tested and ready. SCR retrofitted engines will be available come next Spring and should pass EPA certification. Long term funding has been sourced to provide stability for the next 18 months. Welcome the world of heavily regulated big business folks!