Navistar to close Indianapolis engine plant, foundry

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Navistar International Corp. announced Tuesday, Jan. 27, that it will close its Indianapolis engine plant and Indianapolis Casting Corp. (ICC) foundry as a result of changes in its business relationship with Ford Motor Co., the facility’s primary customer. Ford and Navistar previously announced that they will end their diesel engine supply agreement. Navistar says it intends to cease operations at its Indianapolis campus as of July 31.

“This is a difficult decision because of the impact it has on our employees and the community where we live and work,” says Eric Tech, vice president and general manager of Warrenville, Ill.-based Navistar Engine Group. “But the significant change in Ford’s business plans has forced us to make this decision.”

Navistar says that it will continue to produce diesel engines for Ford through 2009, and that the companies also will continue to collaborate on a range of initiatives, including their existing Blue Diamond Truck and Parts joint ventures and their diesel engine supply agreement in South America.

“Over the past 30 years, Ford and Navistar dominated the diesel-powered heavy-duty pickup truck market, providing value to both companies’ customers and shareholders,” Tech says. “While this phase of our relationship will end, we look forward to continuing to work together through our existing joint ventures and South American partnership.”