Navistar International is making a $250-million capital investment to build a new truck assembly plant in San Antonio, Tex., contingent upon the confirmation of several incentive packages offered by state and local governments. Navistar indicated it hopes to break ground on the project this year, and would begin truck assembly within 24 months.
Navistar also projected the new plant would employ approximately 600 workers.
The new plant would be designed to build Class 6 through Class 8 vehicles on the same production line, complementing Navistar's truck assembly plants in Springfield, Ohio, and Escobedo, Mexico. The Texas site on Interstate 35 will allow for “significant logistic improvements, resulting in lower cost and enhanced profitability,” Navistar stated.
"Over the last five years, Navistar has made significant investments to improve our position in the market," chairman, president, and CEO Troy Clarke stated. "This investment will create a benchmark assembly facility to improve quality, lower costs and provide capacity to support anticipated industry growth, as well as market share gains."
Earlier this year Navistar announced plans to invest $125 million in a diesel engine plant in Huntsville, Ala., to produce powertrains developed as part of an engine alliance with Volkswagen AG subsidiary Traton.
Commercial vehicles are classified by the U.S. Federal Highway Administration according to the gross vehicle weight (GVW) and gross trailer weight (GTW.) Class 6 are the largest medium-duty trucks (e.g., the International MV Series) with GVW of 19,500-26,000 lbs.); Class 7 are the smallest heavy-duty trucks (also covered by the International MV Series), 26,000-33,000 lbs. GVW; and Class 8 trucks (e.g., International WorkStar) are the largest heavy-duty trucks, often referred to as semi-trucks, GVW 33,000 lbs. and larger.