Navistar International Corp. plans to close its Indianapolis engine plant and Indianapolis Casting Corporation foundry as a result of changes in its business relationship with Ford Motor Co., the facilities’ primary customer.
Production at the Indianapolis facilities will end as of July 31, affecting some 700 workers.
Illinois-based Navistar will continue to produce diesel engines for Ford through 2009. The companies also will continue to collaborate on a range of initiatives, including their existing Blue Diamond Truck and Parts joint ventures and their diesel engine supply agreement in South America.
“Over the past 30 years, Ford and Navistar dominated the diesel-powered, heavy-duty pickup truck market, providing value to both companies’ customers and shareholders,” said Eric Tech, vice president and general manager of the Navistar Engine Group. “While this phase of our relationship will end, we look forward to continuing to work together through our existing joint ventures and South American partnership.”