as nyse nav industry automotive predecessor international harvester company founded 1902 1902 headquarters lisle illinois united states area served north america south america russia uk greece eastern europe india middle east china singapore south korea key people troy a. clarke president chief executive officer walter g. borst executive vice president chief financial officer steven k. covey senior vice president general counsel & chief ethics officer products trucks buses and school buses diesel engines chassis revenue 10.775 billion usd 2013 number of employees 16 500 website www.navistar.com navistar international corporation formerly international harvester company is an american holding company that owns the manufacturer of international brand commercial trucks ic bus school and commercial buses workhorse brand chassis for motor homes and step vans and is a private label designer and manufacturer of diesel engines for the pickup truck van hoes and suv markets . the company is also a provider of truck and diesel engine parts and service . headquartered in lisle illinois navistar has 16 500 employees and an annual revenue of 10.775 billion in 2013 . the company s products parts and services are sold through a network of nearly 1 000 dealer outlets in the united states canada brazil and mexico and more than 60 dealers in 90 countries throughout the world . the company also provides financing for its customers and distributors principally through its wholly owned subsidiary navistar financial corporation . contents 1 history 1.1 1986 1991 transition from agricultural roots 1.2 1990s early 2000s rediversification 1.3 2006 2008 1.3.1 accounting issues 1.4 hybrids and navistar defense llc 2003 present 1.4.1 contract awards losses and other events 1.5 2001 present failed engine strategy layoffs consolidation and turnaround 1.5.1 failed engine strategy 1.5.2 non conformance penalties 1.5.3 move to lisle il 1.5.4 tension mounts 1.5.5 layoffs and consolidation 1.5.6 cost cutting and divestitures 1.5.7 legal issues and struggle for profitability 2 brands 2.1 international trucks 2.2 navistar defense 2.3 ic bus 2.4 international harvester navistar diesel engines 3 joint ventures 3.1 ford motor company 3.1.1 ford powerstroke diesel 3.1.2 blue diamond truck 3.2 anhui jianghuai navistar 3.3 mahindra navistar 3.4 tatra 3.5 others 4 plug in electric vehicles 4.1 plug in hybrid electric bus 4.2 estar electric van 5 criticism 6 images 7 see also 8 references 9 external links history edit the merger of mccormick harvesting machine company and the deering harvester company in 1902 resulted in the formation of the international harvester company ih of chicago illinois which over the next three quarters of a century evolved to become a diversified manufacturer of farming equipment construction equipment gas turbines trucks buses and related components . during world war ii international harvester produced the m series of military trucks that served the marine corps and the u.s. navy as weapons carriers cargo transporters and light artillery movement . today navistar produces international brand military vehicles through its affiliate navistar defense . 1986 1991 transition from agricultural roots edit international harvester fell on hard times during the poor agricultural economy in the early to mid 1980s and the effects of a long strike with the uaw over proposed work rule changes . ih s new ceo donald lennox directed the management organization to begin exiting many of its ih s historical business sectors in an effort to survive . some of the sales of profitable business endeavors were executed to raise cash for short term survival while other divisions were sold due to lack of immediate profitability . during this period of questionable economic survival in an effort to raise needed cash and to reduce losses the management team led by mr. lennox at ih shed many of its operating divisions construction equipment division to dresser industries ; solar gas turbines division to caterpillar ; cub cadet lawn and garden equipment to mtd products and lastly the agricultural division to tenneco which merged it with their j.i. case subsidiary . the scout and light truck parts business was sold to scout light line distributors inc. in 1991 . after the agricultural division sale in 1985 all that remained of ih was the truck and engine divisions . the company changed its name in 1986 to navistar international corporation . the international harvester name and ih logo were assets of the agricultural division and consequently were part of the sale to tenneco ; the ih name and logo are still in use having been incorporated into the case ih brand name . in the early 1980s ih developed a series of reliable large displacement v8 diesel engines that were sold as an option for heavy duty ford 3 4 ton and 1 ton pickup trucks . navistar still uses the international brand in its diesel engine and truck product lines and the brand name continues on in product lines of navistar international s international truck and engine corporation subsidiary . 1990s early 2000s rediversification edit during the 1980s and 1990s the popularity of diesel engines had made navistar a leading manufacturer of bus chassis particularly school buses . the company purchased one third of american transportation corporation amtran an arkansas based manufacturer in 1991 and the remaining two thirds in april 1995 . by becoming both a body and chassis manufacturer at the same time navistar gained significant market share in the industry . in 2002 amtran was rebranded as ic integrated coach after a few months as international truck and bus . after nearly a century of business in chicago navistar announced its plans on 30 september 2000 to leave the city and relocate its corporate offices to west suburban warrenville illinois . 1 the company s melrose park illinois plant is notable for a significant workplace shooting on february 5 2001 . 2 international mxt the smallest of the xt pickup trucks in 2004 navistar re entered the retail vehicle market for the first time since 1980 . the international xt extreme truck pickup truck was a series of three pickup trucks . it was by far the largest pickup truck available for retail sale and two of the three versions the cxt and rxt were essentially international durastar medium duty trucks fitted with pickup beds . the third version the mxt was essentially a street legal version of a navistar designed military vehicle . the three xt trucks were sold until 2008 . in 2005 navistar purchased the workhorse company started in 1998 by investors who took over production and sales of general motors popular p series stepvan chassis when gm dropped it a manufacturer of step van and motor home chassis to seemingly re enter the delivery van market . 3 it appeared that the new subsidiary might also benefit by its association with a company whose history from the 1930s into the 60s included the popular metro van . for a short time workhorse offered an integrated chassis body product called metrostar . in sept. of 2012 navistar announced the shut down of workhorse and the closure of the plant in union city in in order to cut costs . 3 2006 2008 edit accounting issues edit in january 2006 the company declared it would not file its form 10 k annual report with the u.s. securities and exchange commission on time . the delay was caused by the disagreement with its auditors deloitte and touche over complex accounting issues . in april navistar fired deloitte its independent auditor for 98 years and hired kpmg to help restate earnings back to 2002 to fix accounting errors . on december 15 2006 navistar executives announced further delay of its restatement and 2006 results . the announcement prompted the new york stock exchange nyse to announce the delisting of the company after 98 years of trading although the nyse subsequently delayed the delisting pending an appeal by navistar . however navistar was removed from the s & p 500 index and the nyse eventually denied navistar s appeal and delisted the stock ; it traded on the pink sheets until 30 june 2008 when it was relisted on the nyse under its previous ticker symbol nav after catching up with its filings . 4 christopher anderson the deloitte partner responsible for the 2003 audit accepted a one year suspension from public audits in 2008 and became the first individual to be fined by the pcaob . 5 ceo daniel ustian agreed to surrender to navistar shares worth 1.3 million while former chief financial officer robert c. lannert consented to repay 1.05 million each sum reflecting monetary bonuses they had received during the restatement period the sec said . four other company executives paid civil penalties without admitting liability . in december 2014 navistar disclosed more accounting problems . these involved out of period adjustments which were corrections of prior period errors relating to product warranties . this resulted in a 36 million increase in cost of products sold . in addition a material weakness was disclosed . in the company s annual 10k they reported that weakness was surrounding validation of the completeness and accuracy of underlying data used in the determination of significant accounting estimates and accounting transactions . specifically controls were not designed to identify errors in the underlying data which was used to calculate warranty cost estimates and other significant accounting estimates and the accounting effects of significant transactions . 6 hybrids and navistar defense llc 2003 present edit international maxxpro mrap in october 2003 navistar ceo dan ustian announced the company would be forming a defense business unit in order to sell military vehicles . navistar defense would be led by archie massicotte a 26 year veteran of the company . ustian stated this is a natural area of growth for international . we already have all the platforms that the u.s. military and other nato countries could leverage for products and services . 7 in 2007 navistar s international truck and engine corporation became the first company to enter hybrid commercial truck production with the international durastar hybrid diesel electric truck . 8 navistar defense llc is the prime supplier of mrap armored vehicles to the us military . the navistar 7000 series has been fielded by the canadian forces for domestic operations . in 2005 the u.s. army ordered 2 900 7000 mvs for the afghan national army and iraqi ministry of defense and an additional order of 7 000 was added in 2008 . navistar defense also has a small canadian branch named navistar defence canada . 9 navistar defense reported sales of 3.9 billion in 2008 and 2.8 billion in 2009 . 10 in october 2009 the company entered into a strategic agreement with czech based company tatra to jointly develop produce and market new military vehicles . 11 in december 2009 analysts were skeptical of the company s long term potential . navistar came out of nowhere and became a big player with mrap in what was a short term program said dean lockwood an analyst at forecast international inc. a connecticut based defense consultant . they didn t prove themselves to be a long term major player . 12 in 2010 navistar defense s sales were 1.8 billion . the company s 2010 annual 10k report stated we continue to expect that over the long term our military business will generate approximately 1.5 billion to 2 billion in annual sales . 10 in 2011 navistar defense s sales were 2.0 billion . 13 in 2012 navistar defense reported 1.0 billion in sales . 14 business insider ranked navistar defense at 22 in the top 25 us defense companies . 15 in 2013 navistar defense reported 543 million in sales . in the company s 10k filing they projected military sales to continue to decline citing u.s. budgetary constraints . 16 in 2014 navistar defense reported 149 million in sales . the company projected 2015 military sales to be slightly higher due to recent contract awards relating to the government s mrap fleet . 6 contract