Navistar International Corporation recently announced that it intends to close its truck manufacturing operation in Garland, Texas, as part of its efforts to reduce costs and optimize its manufacturing footprint. Navistar intends to cease operations at the Garland facility by the first half of 2013.
"Closing a facility is always difficult because of its impact on the many great people who've been part of our company," said Troy Clarke, Navistar president and chief operating officer. "But the fact is that Navistar has too much manufacturing capacity in North America, and we must take quick action to improve our business and position the company for long-term success."
The Garland facility currently employs approximately 900 salaried, hourly and third-party temporary workers.
"We understand that these decisions affect employees and the community," Clarke added. "We will treat people with respect and provide support to help them with their transitions."
Truck volume now produced at Garland will transition to other North America operations that currently build similar models beginning in January 2013.
Once completed, the Garland closure is expected to reduce Navistar's operating costs by $25 to $35 million annually.
For more information, visit www.navistar.com.