American industrial company
International Motors, LLC (formerly Navistar International Corporation) is an American holding company created in 1986. The successor to the International Harvester manufacturing company, International produces trucks and diesel engines under its own brand; the company produces buses under the IC Bus name. Since July 2021, the company has operated as an independent subsidiary of Traton, which is the heavy-vehicle operations arm of the Volkswagen Group. 
International is headquartered in Lisle, Illinois and has its own executive leadership team. The company has 13,000 employees worldwide as of 2019. International operates through a network of nearly 1,000 dealer outlets in the United States, Canada, Brazil, and Mexico and more than 60 dealers in 90 countries. Navistar Defense LLC operates independently and is owned by Cerberus Capital Management.
History.
1902–1985: International Harvester.
The merger of McCormick Harvesting Machine Company and the Deering Harvester Company in 1902 resulted in the formation of the International Harvester Company (IH) of Chicago, Illinois. In 1908, International introduced the International Harvester Auto Wagon, a forerunner of the pickup truck. Over the next three-quarters of the 20th century, the company evolved to become a diversified vehicle manufacturer across many industries. In addition to agriculture and construction, International offered a range of trucks from consumer-grade pickup trucks (Light Line) to heavy-duty commercial trucks along with the first sport-utility vehicles (the Travelall truck-based wagon and the offroad-oriented Scout). Alongside its Farmall tractor brand, International introduced the Cub Cadet brand of lawn and garden tractors and power equipment for home use.
1985–1991: Transition from agricultural roots.
In the early to mid 1980s, International Harvester fell on hard times during the poor agricultural economy of the times; the company had never recovered from a 172-day strike during 1979–1980. New chairman and CEO Louis W. Menk hired a new team of management for International, including president Donald Lennox, and as part of a new reorganization program, Menk and Lennox ensured that the company divested many of its historical business divisions. While some divisions were sold to stave off losses, other profitable divisions were also sold to generate much-needed revenue. The Construction Equipment Division was sold to Dresser Industries; Solar (gas turbines) Division to Caterpillar; Cub Cadet was sold (lawn and garden equipment) to MTD Products. In 1983, the company entered into a supply agreement with Ford Motor Company, with the Engine Division supplying the 6.9L IDI diesel V8 for Ford full-size pickup trucks and vans; at the time, V8 diesels served as a fuel-efficient alternative to large-displacement gasoline V8 engines. With the 6.9L and its successor V8 engines, the supply agreement lasted through 2010.
At the beginning of 1985, the Agricultural Division was acquired by Tenneco, the parent company of company rival Case Corporation; the IHC name and its logo were assets of the Agricultural Division, consequently part of the sale. Tenneco created the merged Case IH (as both brands currently remain). Following the sale to Tenneco, all that remained of the company were the International Truck and Engine Divisions. In response to the sale of its own brand and logo, International Harvester reintroduced itself on February 20, 1986, as Navistar International Corporation (combining "Navi-" of Navigation and "Star" from multiple truck lines). Navistar International became the parent company of International Truck and Engine Corporation (the previous Truck and Engine Division), with an orange-red diamond logo replacing the IH "tractor" logo. In 1987, International introduced the 8300, marking a second generation of the International S series. Designated as the "Thousand Series" by the marketplace, the 8300 was joined by additional Class 7/8 tractors and by the 4000-series medium-duty trucks in 1989. To upgrade fuel economy, the Thousand-Series trucks received an aerodynamic hood with faired in headlamps and turn signals; a body-color grille replaced chrome trim. Navistar also transitioned from manufacturing both gasoline and diesel powered vehicles to exclusively selling and making diesel vehicles after 1986.
1990s.
In 1990, International introduced the 9400, an aerodynamic Class 8 truck derived from the Transtar/Paystar cab, using a set-back front axle (to allow for a longer, sloped hood); the classic-style 9300 (the previous Transtar) continued. In 1991, the final remnant of International in the automotive segment was sold off, as the Scout and Light Truck parts business was sold to Scout/Light Line Distributors, Inc. The same year, Navistar became the parent company of a school bus manufacturer as it purchased one-third of American Transportation Corporation (AmTran). Serving as a chassis supplier since the 1920s, Navistar gained significant market share in school bus production, acquiring AmTran entirely in April 1995. In 1994, the IDI diesel was replaced by the all-new T444E diesel V8. Sharing only displacement with its predecessor, the T444E introduced direct injection and standard turbocharging; the engine marked the introduction of the PowerStroke diesel branding for Ford vehicles. In 1998, following a decline in demand for COE trucks in North America, the 9800 was discontinued and production moved to Brazil.
2000s.
After nearly a century of business in Chicago, Navistar announced its plans on 30 September 2000 to leave the city and relocate its corporate offices to west suburban Warrenville, Illinois. In 2000, the 5000/9000-series trucks (Paystar/Transtar) received their first redesign of the cab since 1971, becoming the 5000i/9000i; the cab was enlarged (adding larger windows, moving the firewall forward). In 2001, International introduced the "NGV" trucks (Next Generation Vehicles); the first model family developed under the founding of Navistar, NGV was intended as the successor of the Thousand-Series trucks (though using a nearly identical nomenclature). The S-Series lasted in production through 2003 for severe-service trucks and 2004 as a cowled bus chassis. In 2002, AmTran was rebranded as IC (Integrated Coach) after a few months as International Truck and Bus. For 2004, Navistar reentered the consumer vehicle market for the first time since 1980, introducing the International XT (Extreme Truck) model family. Three pickup trucks were sold, including the CXT 4x4 (derived from the 7300), the RXT 4x2 (derived from the 4300) and the MXT 4x4 (a MXT-MV redeveloped for street-legal use). The CXT and RXT are (by far) the largest vehicles ever sold for consumer sale; to date, the former is the tallest ever mass-produced and the latter is the longest pickup truck ever mass-produced. Following the 2006 introduction of the International ProStar long-haul tractor (replacing the aerodynamic 9400i), International began to retire its previous "Thousand-Series" nomenclature for NGV-based trucks. In 2008, the medium-duty 4000 became the DuraStar with the 7000 severe-service trucks becoming the WorkStar. The 8000 regional-haul tractors revived the TranStar name; the LoneStar flagship long-haul tractor had no predecessor. Using the previous-generation i-series cab, the Paystar 5000 and the 9000i (pared down to the 9900i) In response to low market demand, International ended sales of all three XT pickup truck lines after the 2008 model year.
Purchase of Workhorse.
In 2005, Navistar purchased the Workhorse Custom Chassis, LLC (started in 1998 by investors who took over production and sales of General Motors' popular P-series Stepvan chassis when GM dropped it), a manufacturer of step-van and motor home chassis, to seemingly re-enter the delivery van market. It appeared that the new subsidiary might also benefit by its association with a company whose history from the 1930s into the '60s included the popular Metro van. For a short time Workhorse offered an integrated chassis-body product called MetroStar. In Sept. of 2012, Navistar announced the shut down of Workhorse and the closure of the plant in Union City, Indiana, in order to cut costs. In March 2013, AMP Electric Vehicles took over Workhorse Custom Chassis, LLC's assets and began offering a range of electric vehicles. In 2015, AMP changed the company name to Workhorse Group Incorporated.
2010s.
Move to Lisle, Illinois.
In 2010, Navistar leadership revived an effort to relocate the company headquarters from Warrenville, IL, to nearby Lisle, IL. The new headquarters was expected to retain or create 3,000 permanent jobs and about 400 construction jobs. Navistar President Dan Ustian said roughly 500 engineers would be hired immediately. Navistar aimed to invest $110 million in the Lisle campus, which would include product development. The state gave Navistar incentives of nearly $65 million, including tax credits. In 2011, Navistar announced the move to Lisle. "You can't build a campus like this anywhere for anywhere near the price we paid for this, and even though you might get more incentives, when you look at the whole picture, you really can't beat it," said Don Sharp, Navistar vice president.
In 2011, Navistar began phasing out its Truck Development and Technology Center (TDTC) in Fort Wayne, Indiana. In December 2011, Navistar laid off 130 employees, mostly engineers and designers who were United Auto Workers members. In total, 300 out of 1,400 Fort Wayne employees eventually accepted offers to relocate to Illinois. The other 1,100 workers either retired or chose to remain in Indiana and find work elsewhere. The only Navistar employees remaining after December 2012 were 20-25 people manning the company's test track on Oxford Street. In late July 2015, the TDTC closed and the remaining workers were let go.
Tension mounts.
In June 2012, speculation mounted about a possible takeover of the struggling truck maker. This came as hedge fund MHR Fund Management LLC disclosed a 13.6% stake in the company, slightly higher than billionaire activist investor Carl Icahn's 11.9% stake. As a result, Navistar adopted a poison pill defense. If the plan were triggered by an outside investor taking a stake of 15 percent or more in the company, then Navistar would issue its shareholders rights that would let them buy new common stock in the company at a discount of 50 percent: For each share held, the investor could buy $280 worth of new shares for $140. The investor who took the 15 percent stake or more would not have the right to buy additional shares. In August 2012, Navistar announced it would use Cummins engines and SCR technology. After 37 years with the company, Dan Ustian retired immediately in August 2012 and left his position on the board as well. Former Textron CEO Lewis Campbell was named interim CEO and Troy Clarke was promoted to chief operating officer. Ustian's severance package began at $7.9 million. The company's proxy statement during this time estimated the total package to be $14.6 million, contingent on a share price of $42.07 on Oct. 31, 2011, the end of the company's fiscal year. On September 9, 2012, billionaire and key stock holder Carl Icahn sent an open letter to Navistar's board, blasting them for "abysmal business decisions" and "poor corporate governance." Icahn noted from 2009 to 2012, that "this Board has authorized spending shareholder money on lawsuits against suppliers, competitors and regulators, marketing plans to convince customers that non-compliant engines are actually compliant, accumulating non-core assets such as a Recreational Vehicle manufacturer, and a "gold-plated" corporate headquarters that cost over $100 million. The one thing this Board refused to spend money on was a back-up plan involving the industry standard technology Navistar now must rely on." In a September 2012 interview, Cummins CEO Tom Linebarger said, "all we did was act nice to them (Navistar) even when they didn't talk nicely about us," he smiled, recalling harsh comments that Navistar executives had made about SCR being used by all its competitors. In October 2012, Chief Product Officer Deepak Kapur stepped down, followed by Group Vice President of Product Development Ramin Younessi in December 2012. CIO Don Sharp also left the company in April 2013.
Layoffs and consolidation.
August 2012 featured a Voluntary Separation Program (VSP) as well as involuntary layoffs. This was due to the failed engine strategy, rising warranty costs and declines in commercial and military sales. The company let go 500 employees and in September 2012, announced plans to lay off 200 more salaried employees. In addition, the company announced it would close its Garland, Texas manufacturing facility by mid-2013, resulting in the loss of 900 jobs. In March 2013, Navistar announced that interim CEO Lewis Campbell would step down and COO Troy Clarke would be named CEO and chairman of the board. Jack Allen was named COO. In June 2013, CFO A.J. Cederoth stepped down and James M. Moran, Navistar senior vice president, and treasurer, would act as interim CFO until a successor could be found. In late June 2013, former General Motors executive Walter Borst was named Executive VP and CFO. In September 2013, Navistar announced it would cut 500 more