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Navistar Inaugurates Assembly Plant in Mexico

21 April 1998

Navistar Inaugurates Assembly Plant in Mexico

         First New Plant in 20 Years Will Build Heavy, Medium Trucks

    CHICAGO, April 21 -- Navistar International Corporation
today announced the opening of its new $167 million truck assembly
facility in Escobedo, Nuevo Leon, Mexico.  Approved by Navistar's board in
October, 1996, the 700,000 square-foot plant, the company's first new
assembly plant in 20 years, was constructed in only 12 months and is designed
to meet Mexican and Latin American truck and urban bus demand.
    "The new assembly plant will enable us to continue providing customers in
Mexico and Latin America with the highest quality vehicles and service," said
John R. Horne, chairman, president and chief executive officer.  "We are
driven to better serve new and current customers, many of whom operate in
Mexico and require a complete production, sales and service network closer to
where they do business."
    Though the company has had a presence in Mexico for more than 60 years,
Navistar has moved aggressively during the past two years to expand its
presence as it continued to drive its five-point truck strategy: expanding
internationally, focusing truck assembly plants, simplifying current product
lines, investing in new product development, and achieving competitive wages,
benefits and productivity.
    Navistar's market share in Mexico has grown in 1998 to 19.1 percent, up
from 12.2 percent in 1997.  The company currently serves customers in Mexico
through a 42-location dealer network and a parts distribution center near
Mexico City.
    The International(R) brand medium and heavy trucks and urban buses built
in Mexico will be assembled using International diesel engines manufactured at
the company's Melrose Park, Ill. facility and cab assemblies stamped at
the Navistar.s Springfield, Ohio truck plant.  The trucks also will meet
Mexico's local content requirements of 50 percent.
    The opening of the plant gives the company a full range of manufacturing,
marketing and distribution capabilities in Mexico and enables Navistar to
serve the growing Mexican market as well as Central and South America.  The
plant has the capacity to produce 65 medium and heavy trucks and urban
buses per shift, per day.
    "This plant is a uniquely designed, world-class facility that features
state-of-the-art systems and processes that will help us achieve the highest
standards of excellence in our operations and attain our quality and
productivity goals," said Don DeFosset, executive vice president and president
truck group.
    Following a ribbon-cutting ceremony April 22, Horne will be accompanied by
Mexico's Secretary of Commerce and Industrial Promotion, Herminio Blanco, who
will drive the first truck out of the plant; and the Governor of the state
of Nuevo Leon, Fernando Canales Clariond.
    Navistar International Corporation, with world headquarters in Chicago and
1997 annual sales of $6.4 billion, is the leading North American producer of
International brand heavy and medium trucks and school buses.  Navistar
maintained its position as the leader in the combined U.S. and Canadian retail
markets for medium and heavy trucks and school buses in the first quarter,
achieving a 28.6 percent market share, which is 2.2 percentage points higher
than a year ago.  The company is also a worldwide leader in the manufacture of
International brand mid-range diesel engines which are produced in a range
of 160 to 300 horsepower.

SOURCE  Navistar International Corporation