Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowNavistar International Corp. said this morning it will close its Indianapolis engine plant and adjacent Indianapolis Casting Corp. foundry effective July 31.
The closing was largely expected after Navistar agreed earlier this month to stop producing diesel engines for Ford Motor Co. Navistar’s Brookville Road plant produces engines used in Ford’s F-Series pickup.
The two facilities employ a total of 700 workers, Navistar spokesman Roy Wiley said this morning.
“This is a difficult decision because of the impact it has on our employees and the community where we live and work,” Navistar Engine Group General Manager Eric Tech said in a statement. “But the significant change in Ford’s business plans has forced us to make this decision.”
The decision to stop making diesel engines was part of a settlement reached in a legal dispute between the two companies. Ford claimed Illinois-based Navistar wasn’t adequately sharing warranty costs for the engines and raises prices “without adequate explanation or support for its actions.”
Navistar will continue to produce diesel engines for Ford through 2009. The companies also will continue to collaborate on a range of other initiatives.
Please enable JavaScript to view this content.