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Navistar International Corporation
Traded as NAV
Industry Automotive
Founded Chicago, Illinois (1902)
Headquarters Lisle, Illinois
Key people

Products Trucks
Buses and School buses,
Diesel engines
Revenue $11 billion USD (2012)
Employees 14,800

Navistar International Corporation (IC Bus school and commercial 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.

Current records show headquarters located in Lisle, IL, with employee size of 18,500 and has annual revenue of $11.303billion. 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 the effects of a long strike with the UAW over proposed work rule changes. IH's new CEO, Donald Lennox, directed the management organization to begin exiting many of its IH's historical business sectors in an effort to survive. Some of the sales of profitable business endeavors were executed to raise cash for short-term survival, while other divisions were sold due to lack of immediate profitability. During this period of questionable economic survival, in an effort to raise needed cash and to reduce losses, the management team lead by Mr. Lennox at IH shed many of its operating divisions: Construction Equipment Division to Dresser Industries; Solar (gas turbines) Division to Caterpillar; Cub Cadet (lawn and garden equipment) to MTD Products and, lastly, the Agricultural Division to Tenneco, which merged it with their J.I. Case subsidiary. The Scout and Light Truck Parts Business was sold to Scout/Light Line Distributors, Inc. in 1991.

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, having been incorporated into the Case IH brand name). In the early 1980s, IH developed a series of reliable large-displacement V8 diesel engines that 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 diesel engine 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.[1] The company's Melrose Park, Illinois plant is notable for a significant workplace shooting on February 5, 2001.[2]

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 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.[3] 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 MetroStar. In Sept. of 2012, Navistar announced the shut down of Workhorse and the closure of the plant in Union City, IN in order to cut costs.[3]


Accounting issue

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 earnings back to 2002 to fix accounting errors. On December 15, 2006, Navistar executives announced further delay of its restatement and 2006 results. The announcement prompted the New York Stock Exchange (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 S&P 500 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 relisted on the NYSE, under its previous ticker symbol, NAV, after catching up with its filings.[4] 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.[5] Chief Executive Officer 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.

Hybrids, defense

In 2007, Navistar's International Truck and Engine Corporation became the first company to enter hybrid commercial truck production, with the International DuraStar Hybrid diesel-electric truck.[6]

Navistar 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 US 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.

2012 and non-compliant engines

Template:Rewrite section "In 2012, the U.S. Court of Appeals in Washington threw out an interim rule by the Environmental Protection Agency that allowed Navistar to sell non-compliant engines if it paid a fine. The court found that the U.S. agency had violated the Administrative Procedures Act in issuing the rule because it provided no formal notice or opportunity for comment." [7]

"After the new emissions standards went into effect, Navistar was able to sell its noncompliant engines by relying on pollution credits it had banked previously. With those credits running out, Navistar faced the prospect that it wouldn't be able to sell the engines in the U.S. The EPA rule that was struck down on Tuesday allowed Navistar to sell its model year 2012 and 2013 engines while paying a fine of $1,919 on each engine. Competitors complained that the fines were far too low. The agency adopted the rule without following normal procedures that allow for public comment on proposed rules." [8]

"The court said Navistar's business plight wasn't a proper justification for the EPA to issue the rule without following normal administrative procedures. 'The rule does not stave off any imminent threat to the environment or safety or national security,' Judge Janice Rogers Brown wrote for the court. 'It does not remedy any real emergency at all, save the 'emergency' facing Navistar's bottom line." [8]

Navistar intends to start providing redesigned engines that comply with environmental protections in 2013.[9]


International Trucks

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. International produces a variety of medium-duty, over-the-road, and severe-service trucks.

Medium Duty
Class 8

IC Bus

Further information: IC Bus and AmTran

International has a long history in the school bus industry as a chassis provider, dating 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 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:


IC Bus has introduced concept vehicles in both 40 feet (12 m) and 45 feet (14 m) lengths.[10]

International Harvester/Navistar diesel engines

International Truck and Engine recently launched the "MaxxForce" brand name for its line of diesel engines. Engines were rebranded as "MaxxForce" followed by a number corresponding to the engine's displacement, rounded up. So the 4.5L VT275 became the "MaxxForce 5". Ford continued to use the Power Stroke brand name on their International-sourced engines.

Joint ventures

Ford Motor Company

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.

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 in American pickup trucks (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 smaller engine. Ford entered into a supply agreement with International Harvester to receive its 6.9 L IDI V8 engine. The first diesel-powered Ford pickup trucks debuted for 1982; it was available for 3/4 and 1-ton models. GM at the time had a Detroit Diesel V8 engine also on its debut, prior to that GM used a 350 Diesel. Dodge started using a Cummins six-cylinder in 1988.

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[11] to manufacture medium-duty trucks and parts, including diesel engines for both parent companies. The new company, Blue Diamond Truck Co. LLC,[12] operates in the Navistar plant in General Escobedo, Mexico.[13] Its first products were the 2004 Ford F-650 and F-750 medium-duty trucks.[14]

Anhui Jianghuai Navistar

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.[15]

Mahindra Navistar

Main article: Mahindra Navistar

Navistar formed a joint venture with Mahindra & Mahindra to build heavy trucks in India under the "Mahindra International" brand,[16] which has since been renamed Mahindra Navistar.[17] These trucks were displayed at Auto Expo 2010 in Delhi, India.


Tatra and Navistar Defence introduced at Eurosatory Exposition in Paris, France (June 14–18, 2010) the results of their strategic alliance since October 2009, the models ATX6 (universal container carrier) and ATX8 (troop carrier)[18] The vehicles appear to be based on Tatra T815-7 (T817) 6x6, 8x8 chassis,[19] suspension and cabins while using Navistar engines and other componets.[20] 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 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.[21]
  • Navistar entered into an agreement to purchase General Motors' medium duty truck unit in 2007,[22] but because of changing market conditions, the purchase was not concluded.[23]

Plug-in electric vehicles

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.[25]

eStar electric van

The eStar is an all-electric van manufactured in Wakarusa, Indiana. Production began in March 2010 and first deliveries began two months later.[24] 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.[26] 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.[27]

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 a 80kWhr lithium-ion battery pack supplied by A123 Systems, and also uses regenerative braking.[28] 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).[27]

The first vans were delivered in May 2010 to FedEx Express for use in Los Angeles.[29] Other customers include Pacific Gas and Electric Company (PG&E), The Coca-Cola Company, and Canada Post.[30][31][32] The eStar has a price of US$150,000.[27]


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%.[33] 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.[34]


See also

Chicago portal
Illinois portal
Companies portal
Trucks portal


External links

Official Navistar Sites

  • Navistar
    • International Trucks
    • MaxxForce
    • Navistar Financial
    • Navistar Defense
    • IC Bus
    • Navistar Engine Group
    • MWM International Motores
    • Navistar Electronics
    • Navistar Parts
    • Mahindar Navistar
    • International - Southern Africa
    • eStar(tm) Electric Truck
    • International Used Trucks

Template:Navistar International Corporation

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