Navistar Considering Cuts to Engine Production Capacity

March 21, 2013


Navistar has more engine plants than it needs and is considering options for consolidating engine production, Chief Operating Officer Troy Clarke said.

"We build engines in three places and none of them is fully utilized. You just can't make any money doing that," Mr. Clarke said during an interview Wednesday at the Mid-America Trucking Show in Louisville, Ky. "Under-utilized manufacturing capacity is just a cost and it's a cost that we don't have to bear."

Mr. Clarke didn't provide specifics about plant closings being considered, but he said that a final decision will likely take months. The company operates two engine plants in Huntsville, Ala., and a third in Melrose Park, Ill., outside of Chicago. One of the Huntsville plants was opened in recent years to build a 15-liter engine that Navistar abandoned last year.

Mr. Clarke, who will replace interim Chief Executive Lewis Campbell next month, said closing any of the engine plants would be more difficult than the decision last year to eliminate the Garland, Texas, truck assembly plant. Production of heavy-duty trucks at Garland was shifted to plants in Escobedo, Mexico, and Springfield, Ohio.

"We had invested in this build-any-truck-at-any-plant [system], so shutting a [truck] plant down was easier for us to do than on the engine side," Mr. Clarke said.

The company lost $3 billion last year, amid soaring warranty expenses for its new 13-liter engines and a costly change in emission control strategy. By the end of this month, Navistar expects the EPA to certify that the company's 13-liter SCR engine meets the agency's latest emissions standard.

Navistar, which has traditionally been the third largest seller of heavy-duty trucks in North America, lost market share last year to Daimler's Freightliner unit, Paccar and Volvo. Recent estimates put the company's share of the heavy-duty market at about 12%, down from about 21% at the end of 2011.

http://www.4-traders.com/NAVISTAR-INTERNATIONAL-CO-13684/news/Navistar-Considering-Cuts-to-Engine-Production-Capacity-Operating-Chief-16564524/

Eaton and Navistar Develop New UltraShift PLUS Transmissions

March 21, 2013


Eaton has launched a new family of UltraShift PLUS transmissions designed exclusively for Navistar to maximize fuel efficiency in linehaul applications. To be co-released by the two companies, the new 16-speed direct drive automated mechanical transmissions are designed with a small 17% step between gears to optimize time in a diesel engine's most efficient RPM zone and help reduce fuel consumption.

The new UltraShift PLUS LSE (Linehaul Small-Step Efficiency) will be released initially with Navistar's MaxxForce 13L SCR engines on the International branded vehicles and followed shortly thereafter with Cummins ISX15 engines.

Fleets involved with testing the new transmissions have reported fuel economy improvements from 2 to 4%. Production is scheduled to take place in April of this year.

"The direct drive design also boosts the efficiency of the transmission gear train, to further promote excellent fuel consumption," said Shane Groner, North America product planning manager for Eaton's Commercial Vehicle Transmission Division. "All of the other features and benefits of the UltraShift PLUS are included in this newest addition to our lineup."

The new UltraShift PLUS LSE transmission has 16 forward gears and two reverse gears, and an overall ratio of 14.40. The standard warranty is 5-year/750,000 miles for the transmission and 3-year/350,000 miles for the clutch.

All UltraShift PLUS transmissions use an electronic clutch actuator to provide faster shifting and smoother engagement. The clutch is fully engaged at idle, giving the driver ultimate control in challenging situations, like parking lots, loading docks and other tight spaces.

Additional UltraShift PLUS features include:

• Fully automated two-pedal design (no clutch pedal).
• Safety features include auto neutral and Intelligent Hill Start Aid, which prevents roll-back and roll-forward while launching on grades using foundation wheel brakes.
• Automatic, Manual and Low modes offer driver full control.
• Crepe Mode allows the vehicle to be driven at a constant speed (optional).

http://www.marketwatch.com/story/eaton-and-navistar-develop-new-fuel-friendly-ultrashift-plus-transmissions-2013-03-21