Navistar recently announced that the company is proceeding to close down its Indianapolis-based engine foundry.

Navistar will lay off 180 engine makers in the US

Navistar expects to complete the closure of the above-mentioned foundries in the summer of 2015. Once closed, Navistar will save US$13 million in operating costs each year. At the same time, 180 employees will be laid off.

Navistar said that in the future, the company will gradually purchase engine parts from suppliers, and thus successfully complete the transition in the first half of 2015.

Persio Lisboa, president of Navistar's operations department, said: "In the past two years, we have taken a series of measures to expand our business and constantly seek to restore profitability and long-term success. Cooperation with suppliers will help reduce production costs and improve Overall capacity utilization, and free up more resources to invest in our North American truck and parts business.”

In the fourth quarter of 2014, Navistar spent US$11 million to cover expenses related to employee departures, pensions, other retirements, termination of contracts, and inventory reserves. In addition, to eliminate the impact of shutting down the Indianapolis foundry in the first half of next year, the company expects to spend more than $40 million in additional costs.

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