You have reached your limit of free articles this month.

Enjoy unlimited access to SpringfieldNewsSun.com

Starting at just 99¢ for 8 weeks.

GREAT REASONS TO SUBSCRIBE TODAY!

  • IN-DEPTH REPORTING
  • INTERACTIVE STORYTELLING
  • NEW TOPICS & COVERAGE
  • ePAPER
X

You have read of premium articles.

Get unlimited access to all of our breaking news, in-depth coverage and interactive features. Starting at just 99c for 8 weeks.

X

Welcome to SpringfieldNewsSun.com

Your source for Clark and Champaign counties’ hometown news. All readers have free access to a limited number of stories every month.

If you are a News-Sun subscriber, please take a moment to login for unlimited access.

Navistar names CEO, plans to up production


Navistar International Corp.’s stock rose 24 percent after the company announced Thursday a new CEO, its quarterly earnings and plans to up production.

Company President and Chief Operating Officer Troy Clarke will become Navistar’s president and CEO April 15.   

Navistar — the ninth largest employer in Clark County with more than 850 workers — plans production increases in Springfield and hired 20 temporary workers last month, said Jason Barlow, president of UAW Local 402.

Clarke joined Navistar in 2010 after a 35-year career at GM.

Interim Executive Chairman and CEO Lewis Campbell will step down from those positions and the board.

Although stocks topped $31.14, the company reported first-quarter losses of $127 million, up from a $157 million loss a year ago. In November the company reported a loss of $2.9 billion for the fiscal year ending Oct. 31, 2012.

Navistar has made cuts to staunch the losses. It’s closing its Garland, Texas, plant this summer, and moving production to Springfield and its plant in Escobedo, Mexico. Navistar also cut 700 corporate-level jobs between buyouts and layoffs, and may cut more, according to a news release. Spokesman Steve Schrier said the company is reviewing sales, administration and other areas to look for cost-saving cuts.

“They got beat up pretty badly with all the things that were going on but the basic value of the company is there. They made a bad bet on the emission control,” said David Cole, chair emeritus of the Center for Automotive Research.

He cited Navistar’s struggles last year with bringing its engines up to carbon emissions standards, something it couldn’t do despite millions invested. A lawsuit from competitors followed, as well as a battle with the Environmental Protection Agency and pressure from activist investors to shake up the company.

“Now they have stability with a new leader stepping in and you have that reduction of uncertainty,” Cole said.

The truck market has struggled. The economy is on “neutral,” Cole said, and many companies are sitting on cash, and cutting back investments and hiring.

Navistar’s trucking segment is down from a year ago. It reported a $58 million loss in the trucking segment this year, compared with the first quarter loss of 2012 of $27 million.

According to Navistar, the loss was driven by a decline in traditional truck volumes and from the Garland closure.

In the long run, closing Garland “will help us reduce costs because we have enough capacity building trucks efficiently at Springfield and Escobedo,” Schrier said.

Barlow called Clarke’s promotion a good thing.

“He has a long history of working with (the UAW) … In the past (Navistar was) running away from union labor, now they’re saying they want to work together instead of fighting or discouraging union involvement,” Barlow said.


Reader Comments ...


Next Up in Business

Springfield native brings fashion show to Upper Valley Mall
Springfield native brings fashion show to Upper Valley Mall

The Upper Valley Mall will be the center of area fashion on Sunday, June 25. The second “Fashion. Forward. Fusion.” Fashion Show will gather designers from Springfield, Dayton, Cincinnati and Columbus to showcase their latest offerings, 5 to 7:30 p.m. at the former MC Sports location. READ MORE: Goat yoga craze stretches into Clark County...
Snapchat introduces location-sharing with Snap Map
Snapchat introduces location-sharing with Snap Map

Snapchat is introducing a new way to locate your friends with the Snap Map.  The social media platform announced the news this week, revealing that the location-sharing feature will allow friends to find each other or anyone in the world using its map.  “We've built a whole new way to explore the world! See what's happening, find your...
Dayton Air Show announces paved parking for 2017 show
Dayton Air Show announces paved parking for 2017 show

Record rainfall on Friday is forcing coordinators of the Vectren Dayton Air Show at the Dayton International Airport to direct people today to alternative and paved parking sites. Two years ago, monsoon-like heavy rains pummeled the first day of the air show, causing many vehicles to become mired in muddy, grassy parking spots near the airport. Air...
JOB ALERT: Kroger to hire for 800 open positions at all locations
JOB ALERT: Kroger to hire for 800 open positions at all locations

Cincinnati-headquartered Kroger is hiring for 800 open positions at all Kroger locations. The grocery retailer is looking for new employees during a hiring event on Saturday from 11 a.m. to 4 p.m. at all Kroger stores. Positions are open in the following departments: deli, bakery, meat and seafood, Starbucks, grocery and ClickList. Interested applicants...
Goat yoga craze stretches into Clark County
Goat yoga craze stretches into Clark County

Clark County residents have a chance to take part in a new fitness craze, goat yoga, which combines traditional yoga with baby goats. The Smiling Prairie Goat Farm, 9697 Chenoweth Rd., South Charleston, is offering classes this summer. The next class will be 10 a.m. to noon Saturday. The cost is $25 a person. Sisters Jeri LaVielle and Linda Leonhard...
More Stories