Dear Navistar Stakeholder,

If you’re visiting this website, you likely know about Navistar. You know our proud history, and you know about our commercial vehicles, diesel engines and service parts distribution. You might also know that we have 13,000 employees who work hard to deliver world-class products and services.

But you might be less familiar with the challenges we face.  Navistar isn’t profitable and hasn’t been for some time.  We have reported significant losses since 2012, and our market share is down by double digits.  We’ve done a lot to fix our issues, and our quality shows it, but we’re not yet where we need to be to be competitive.

To ensure Navistar’s long and proud legacy continues, we must operate differently.  Today’s winning players have adopted lean principles, which focus on eliminating waste – things like wasted time, wasted material, and wasted money – to improve safety and quality.  They have flexible and cost-competitive operations that can quickly adjust to changing demands and increasing expectations.

To compete, we can’t be put at a disadvantage – Navistar needs similar capabilities. So it will come as no surprise that the company expects these topics – safety, quality, lean operating principles, flexible operations and competitive costs – to dominate our discussions with the UAW.  Another topic will likely be job security, and we believe job security comes through being competitive and winning in these difficult markets.

In recent years, CEO Troy Clarke and other Navistar leaders have worked hard to build a collaborative partnership with UAW leaders. For example, UAW leaders were asked to be part of the lean steering committee at our Springfield Assembly Plant.  This collaboration is one reason we’ve seen early successes with those lean efforts.  And we need this same kind of collaboration as we address the differences between how our union-represented and non-represented facilities operate – and between our facilities and those of our competitors.

Though significant for Navistar, the changes needed are not unprecedented.  As I mentioned, lean operating principles and flexible operations are now common among today’s manufacturing facilities, represented and non-represented alike.

We will make every effort to achieve a competitive and fair agreement for the 1,500 employees at our UAW-represented facilities affected by this contract. In the event our joint efforts cannot reach a competitive agreement, it’s important for our customers to know we have solid plans in place that will allow us to continue to deliver quality products and services.

Sincerely,

Greg Elliott
SVP, Human Resources and Administration