Truck Engine Supplier Navistar Closes Plant
The plant will close July 31st , at the same time as the Navistar – Ford contract is set to end. Navistar's decision to close the Indianapolis and the Kentucky plants will downsize the company's payroll by up to 700 people.
“This is a difficult decision because of the impact it has on our employees and the community where we live and work,” Eric Tech, Navistar Vice President, said.
Ford and Navistar will maintain their relationship for the Blue Diamond Truck and Parts joint venture and will continue their South American engine supply contract. Closing the Indianapolis plant and foundry comes as a result of "significant change in Ford's business plans,” Eric Tech said.
This “change in business plans” comes in the after 30 years of collaboration that reached an all time low in 2007, when both companies where caught up in a bitter legal fight.
Ford sued Navistar in January 2007 over quality and warranty concerns. In June 2007, Navistar sued Ford for breach of contract over the development of the F-150 pickup truck. The fight that began then only ended last week, when the two companies decided to drop all litigation concerning the F-150.