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Navistar Will Cease Production of Cabover Truck Model at Ohio Plant

16 November 1998

Navistar Will Cease Production of Cabover Truck Model in Springfield, Ohio; Production Capacity Allocated to Other Models Produced There; No Job Losses as a Result

    CHICAGO, Nov. 13 -- Citing low demand for cabover products in
North America, Navistar International Corporation announced that
it will cease production of its International(R) 9800 model cabover truck
at its plant in Springfield, Ohio, effective March 31, 1999.  This is
only one of many models produced at the plant.
    The company indicated that this move will free up capacity at the
Springfield plant that will now be available for production of other
heavy-duty truck models that are experiencing strong demand.  As a
result, the decision will not cause any employees to lose their jobs,
the company said.
    In cabover trucks, the driver's cab is located above the engine.
Navistar currently produces only four such trucks each day at
Springfield.
    "Since 1988, the cabover segment of the heavy truck industry has
declined by approximately 90 percent," said Steve Keate, vice president
and general manager, heavy duty vehicle center.  "Exiting the 9800 model
in North America will allow us to focus our resources on products that
our customers demand."
    This move affects only the cabover 9800 model.  The Springfield plant
will continue production of medium-duty trucks and school buses as well
as other on-highway heavy trucks and severe service trucks (models 8100,
2000, F-4900s).  Premium conventional heavy-duty trucks are produced at
the company's Chatham, Ontario plant.
    "This decision affects only those 9800 model trucks that are produced
for our customers in Canada and the United States," Keate said.  "We do
intend to continue producing the 9800 for export markets.  These trucks
will be produced in Brazil, where there is strong market demand."
    Navistar International Corporation, with world headquarters in Chicago
and 1997 annual sales of $6.4 billion, is the leading North American
producer of 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 through the
nine months, achieving a 28.5 percent market share for the International
brand, an increase of 1.4 percentage points over last year.  The company
is also a worldwide leader in the manufacture of mid-range diesel
engines, which are produced in a range of 160 to 300 horsepower for the
International brand.