UPDATE: Navistar Announces Will Consolidate Engine Manufacturing, Cutting 280 Jobs

Navistar International Corporation(NYSE: NAV) announced today the consolidation of mid-range enginemanufacturing, an important next step in its turnaround efforts. As a result,the company will move mid-range engine production at its Huntsville, Ala.,plant to Melrose Park, Ill. Navistar will continue to build its 13-literengine at its Huntsville, Ala., big bore engine plant."As we have stated previously, we have too much excess engine manufacturingcapacity in North America and we must take action to reduce our costs andimprove the business," said Jack Allen, Navistar chief operating officer. "Theconsolidation will further lower the company's breakeven point, strengthen ourcompetitiveness in the marketplace and help position Navistar for a return toprofitability."Once completed later this summer, these actions are expected to eliminateapproximately 280 jobs at Huntsville and reduce Navistar's operating costs byabout $22 million annually."Ending production at a facility is a difficult decision because of its impacton the many great people who've been part of our company," Allen said. "Weunderstand that these decisions have an impact on our employees and thecommunity and we will treat our people with dignity and respect throughoutthis process."