Skip to comments.Navistar to Close Garland, Texas, Plant to Reduce Costs(EPA induced)
Posted on 10/31/2012 8:48:47 AM PDT by DallasBiff
Navistar International Corp. (NAV) plans to close its Garland, Texas, assembly plant, as the embattled truck maker shrinks it manufacturing capacity in response to falling demand for commercial trucks.
The plant near Dallas employs about 900 workers and has been Navistar's primary site for assembling heavy-duty trucks in recent years. The company intends to cease operations at Garland during first half of next year. Closing Garland is expected to lower Navistar's costs by increasing the utilization of other plants.
Navistar, which also makes military trucks and school buses, has lost $241 million during the first nine months of its fiscal year amid increasing problems with the company's engines. Navistar had been trying to meet the U.S. Environmental Protection Agency's 2010 tightened standard for smog-causing nitrogen oxide with a treatment process different from the rest of the truck industry.
But after more than two years of trying to reach the EPA standard, the company abandoned the strategy this summer and now is attempting to retrofit its engines with the same treatment process used by other U.S. truck builders. The failed strategy caused the company to lose market share and eroded investors' confidence in the company.
(Excerpt) Read more at foxbusiness.com ...
AKA: the Economy Pillaging Agency. These unelected washington thugs have done more damage to this country than any enviromental protection their misguided efforts hoped to solve.
Navistar believed they could create a competitive advantage by making an engine that didn't need an extra “treat” tank.
The EPA has been doing this to the trucking industry for many years. Navistar brought some of this on themselves with mis-management, and a poor choice for their engine strategy. There has been a lot of NAFTA trucking production lost in the last decade. 5th plant that I can think of, with only one additional being built (in Mexico).
They sold their corporate identity a couple of decades ago, and it seems like they have lurched from crisis to crisis ever since.
Maybe those plug in school buses will work out for them, but I wouldn’t bet my own money on it. Oh, wait, I have, since I’m a taxpayer.
The boss made a bad bet on his ability to redesign his diesel engines against the warnings of his engineers. They failed even though tons of money were thrown at the task.
Everyone added devices to induce fuel additives and have no problem.
The problem is not the EPA, the problem is a CEO who made and redoubled down on a bad decision