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Navistar Aligns Truck Group With Customers and Markets to Enhance Competitiveness

11 December 1997

Navistar Aligns Truck Group With Customers and Markets to Enhance Competitiveness

    CHICAGO, Dec. 11 -- To build on recent successes in the
marketplace and strengthen its competitive position, Navistar International
Corporation today announced the reorganization of its truck group
into six distinct businesses to sharpen the company's focus on serving
its customers and markets to improve overall performance.
    "These changes are a natural evolution in the process of enhancing
Navistar's competitiveness," said Don DeFosset, Navistar executive vice
president and president, truck group.  That process began with the development
of our five-point truck strategy, continuing through its rapid implementation
over the past 18 months and the landmark labor agreement we achieved this past
fall with the UAW that eliminated many of the obstacles that stood in the way
of our competitiveness.
    "The benefits of this reorganization include greater accountability for
our people in running their businesses, faster decision making, and increased
flexibility and agility in responding to customer needs.  We are now more
focused than ever on improving the value we deliver to our customers and
markets -- leading to improved customer satisfaction and financial
performance," he said.
    The new organization consists of four vehicle centers -- heavy truck,
severe service truck, medium truck and school bus -- and two business
centers -- parts and international.  In addition, eight functional groups will
deliver operational excellence across the businesses in manufacturing,
sales and distribution, engineering, reliability and quality, purchasing,
branding, information systems, human resources and finance and planning.
    There will be no charges associated with the reorganization.  While
individual responsibilities will change, the reorganization will not change
current employment levels, DeFosset said.
    "This new structure is the result of an extensive analysis of our business
and our talent to ensure we have a strong organization in place to drive our
success and continue our position as the marketplace leader," DeFosset said.
     With annual sales of $6.4 billion, Navistar International Corporation is
the leading North American producer of heavy and medium trucks and school
buses.  Navistar maintained its position as the sales leader in the combined
United States and Canadian retail markets for medium and heavy trucks and
school buses through the fiscal year, achieving a 28.6 percent share, which is
1.1 percentage points higher than the previous year.  The company also is
the worldwide leader in the manufacture of mid-range diesel engines, which are
produced in a range of 160 to 300 horsepower.

                         NAVISTAR TRUCK ORGANIZATION
                              December 11, 1997

    General managers of the businesses are:
    J. Steven Keate -- Heavy Truck Vehicle Center:  Keate joined Navistar in
1995 as vice president and controller.  Prior to joining Navistar, he was vice
president and controller of General Dynamics.  He began his career at General
dynamics at the Convair Division and progressed through a number of
responsible financial positions both at Convair and General Dynamics'
headquarters.
    David J. Johanneson -- Medium Truck Vehicle Center:  Johanneson has spent
more than 20 years in the truck group, holding a number of sales and marketing
positions.  He was vice president of the medium truck group prior to being
named group vice president, truck businesses, in 1993.
    Jordan H. Feiger -- Severe Service Truck Vehicle Center:  Feiger joined
Navistar in 1984 and has held a variety of finance positions throughout the
company.  He was director of pricing for truck sales prior to being named vice
president, operations, for Navistar Financial Corporation in 1995.
    Thomas R. Cellitti -- School Bus Vehicle Center:  Cellitti began his
career with the company in 1975 at the Melrose Park, Ill., Engine Plant.  His
career has included a variety of positions in finance and manufacturing
including plant manager of the Melrose Park Engine Plant.  He was named vice
president, bus business in 1991.
    Steve P. Koch -- Parts Business Center:  Koch has been with the company
for 20 years, serving in a broad range of assignments in purchasing, finance
and human resources.  He has served as president of Navistar Canada and was
named vice president and general manager of parts operations in 1991.
    Dennis Webb -- International Business Center:  Webb joined the company in
1969 as a management trainee.  He held a variety of positions in financial
management, operations, business planning and product planning before his
appointment as group vice president, international operations in 1991.

                           Navistar Truck Organization

    Leading the functional groups are:
    James T. O'Dare -- Sales & Distribution:  O'Dare joined the company in
1965 as a retail sales trainee.  He has held a variety of positions in sales
and marketing and used truck operations during his career, before becoming
group vice president, sales & distribution in 1992.
    Anthony L. Hines -- Manufacturing:  Hines, formerly senior vice president
with Honda of America Manufacturing, joins Navistar Dec. 15 as vice president,
manufacturing.  His responsibilities at Honda included North American
manufacturing engineering, auto quality operations, production control,
transportation research, strategic planning, accounting and finance, and
information technology, as well as environment, health and safety.  Hines
brings extensive expertise in manufacturing systems, TQM leadership,
manufacturing and production engineering.
    R. Gary Diaz -- Engineering, Reliability & Quality:  Diaz joined Navistar
in May 1997 as group vice president and chief technical officer.  Previously,
he was a senior vice president of Case Corporation responsible for
manufacturing, engineering and product development.  Before Case, he held a
variety of positions with General Dynamics' Land Systems Division.
     James L. Simonton -- Purchasing & Supplier Development:  Simonton joined
the company in 1959 and has held a wide variety of positions in plant
management and materials management.  He's currently vice president,
purchasing & supplier development.
     Andy Opila -- Corporate & Product Brand Development:  Opila joined
Navistar in 1996 as manager, communications strategy and more recently was
named to lead Navistar's branding initiative.  Previously he was manager,
corporate communications, with M.A. Hanna Company in Cleveland.
     Art Data -- Navistar Information Organization:  Data has been with the
company since 1975, holding a variety of technical and engineering positions
before being promoted to vice president, Navistar Information Organization, in
1993.

SOURCE  Navistar International Corporation