Navistar announced that it might have to close some of its plants in order to cut costs. A company spokesperson said that Navistar is currently analyzing its manufacturing footprint. The move came after the company got a new CEO, Lewis Campbell, in August. The change was made in order to turn around the troubled company.
Analysts were cautious about Navistar in the last few months. Some believe that the new CEO could turn the truck manufacturing giant around. As of Friday afternoon, the company’s stock was trading around $21 per share. Some analysts believe that it is worth around $40.
Stocks of Navistar have dropped since the start of the year after the company’s new engine technology failed to meet the requirements of the federal emission regulations. With Campbell as head of the company, it has made the decision to scrap the new engine. This solved one of the company’s immediate problems.
But analysts still found some problems with Navistar’s finances. It has unfunded pension liabilities that it needs to solve as soon as possible. The company has made several mistakes that contributed to the decline of its market share. It has an allegiance with the international nameplate. Then there’s the engine technology problem. The company needs to improve their costs and operations in order to increase the shares. Hopefully, the new CEO can help the company rebound from its slump.
Last August, Navistar asked its 6,300 employees if they want to take voluntary buyouts. Around 3,400 of the workers were based in Chicago. The company has slashed 800 non-factory jobs since the announcement was made.
A Navistar spokesperson declined to comment on how many workers will be cut in the near future or how many of those are Chicago employees. She said that the company doesn’t have any plans to cut any more positions at the moment.
Get Analysts' Upgrades and Downgrades Daily - Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.