m i d r a n g e

Poised For Progress

Navistar is on track with plans to develop new models while streamlining plant operations and cutting costs, according to John Horne, chairman, president and CEO.
A key development was the recent contract agreement with the United Auto Workers, which extends its contract to 2002. The settlement, supported by an 80% favorable vote of local unions in Navistar’s Springfield, IL, truck plant and Indianapolis foundry, reduces labor costs. It also opens the door for development of a new medium duty lineup. Navistar’s board of directors quickly approved $686 million for the program, called NGT (New Generation Truck).
NGT models will replace the current International 4000 series, 2000 series and 8000 series trucks and the 3000 series buses, said Don DeFosset, truck group president. Designs will focus on cab and driver environment, low cost of operation, visibility and maneuverability, using a modular manufacturing approach.
“It’s our first from-the-ground-up cab development program in 20 years,” said DeFosset. The new models are expected to begin rolling out in 2001.
The UAW contract also allows Navistar to streamline manufacturing. For instance, the Springfield plant, which currently makes 19 models, will build only the NGT.
Horne said, “Pricing will go down in the future on all our products. As the industry gains experience, costs go down,” He said electronic engines are now cheaper to build than mechanical powerplants, and other cost reductions will be achieved.
On the future of the heavy duty cabover tractor — now about 3% of all heavy truck sales — Horne said:“We have the concepts to make our cabover (productivity) spectacular, but the preference among drivers is that they like a hood. Our customers will determine cabover growth.”