In order to solve the problem of engine overcapacity in North America, Navistar International Inc. is considering integrating North American engine plant production operations.
Troy Clarke, chief operating officer of Navistar, said that the company’s three engine factories in North America have not been fully utilized. In order to solve this problem, the company will make a decision within the next three months. These factories will be integrated.
Navistar has an engine factory in Melrose Park, Illinois, and two engine plants in Huntsville, Alabama. One of the plants was previously used to produce a A 15-litre engine, but Navistar decided to stop production of the engine in 2012 and instead purchase from Cummins. In addition, Navistar shut down its truck factory in Garland, Texas, in 2012.
Zhuo Kaikai said that because Navistar has implemented a production model that produces a variety of truck models in all factories, it will be more difficult to integrate engine production capacity than truck production.
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