Navistar presents 2020-24 strategy for shareholders

Navistar presents 2020-24 strategy for shareholders

Navistar International Corporation presented its 2020-24 strategy, “Navistar 4.0,” at its Investor Day event Sept. 19, laying out a plan to increase the company’s earnings before interest, tax, depreciation and amortization (EBITDA) margins to 12%.
Navistar-international-EdmontonPDC-WEB

Navistar International Corp. presented its 2020-24 strategy, “Navistar 4.0,” at its Investor Day event Sept. 19, laying out a plan to increase the company’s earnings before interest, tax, depreciation and amortization (EBITDA) margins to 12%.

The company says Navistar 4.0 includes the following elements:

  • Improve EBITDA margins to 10% by 2022 and 12% by 2024;
  • Grow market share and become the number one choice of the customer through new product offerings and customer segmentation;
  • Implement a single platform strategy to optimize use of R&D resources and commonization of parts and tooling;
  • Increase modular design resulting in customer benefits, speed to market and lower product costs;
  • Build a new truck assembly facility in San Antonio, Texas, reducing logistics and manufacturing costs;
  • Use the Traton alliance to provide significant procurement savings, more efficient R&D spend and new integrated powertrain offerings for customers;
  • Grow aftersales revenues with an expanding distribution network, growing private label sales and e-commerce initiatives;
  • Improve financial results allowing the company to invest in growth initiatives, de-lever the balance sheet and fully fund its defined benefit pension plans by 2025.

Investment in new manufacturing plant

Building on the recently announced $125 million investment in its Huntsville engine plant, the company separately announced its intent to invest more than $250 million in a new facility in San Antonio, Texas, contingent on incentive approval.

“The new facility will have the flexibility to build Class 6-8 trucks incorporating the most advanced lean manufacturing practices, enabling lower conversion costs and an optimized supply chain,” said Persio Lisboa, Navistar’s chief operating officer.

Building on Traton alliance

Navistar said another contributor to its future is the alliance with Traton Group.

“Our savings from the global alliance with Traton are on track to yield $500 million in the first five years, with $200 million in annual savings by year five,” said Walter Borst, Navistar’s chief financial officer.

Longer-term financial guidance

In its presentation, Navistar also provided industry and company financial guidance for 2020, including:

  • Industry retail deliveries of Class 6-8 trucks and buses in the United States and Canada are forecast to be between 335,000 and 365,000 units;
  • Revenues are expected to be between $10.0 billion and $10.5 billion;
  • Adjusted EBITDA is expected to be $775 million to $825 million;
  • Manufacturing free cash flow is expected to be breakeven excluding changes in working capital.

You May Also Like

Kenworth offers OOIDA members $1,000 savings on new sleeper trucks

Buyers can use the discount on new or special order Kenworth T680, T880 and W990 trucks with a 52-in. or larger factory-installed sleeper.

Kenworth-T880-mid-roof-sleeper-truck

Kenworth and the Owner-Operator Independent Drivers Association (OOIDA) announced a $1,000 savings offer to OOIDA members on purchases of certain new Kenworth sleeper trucks for 2024. Kenworth said members can apply the discount on both new stock or special order T680, T880 and W990 trucks with a 52-in. or larger factory-installed sleeper.

NACFE: small depots are ready to scale electrification

Dipping your toes into electrification is one thing, leaping into running 15+ BEVs is another. Though NACFE says for many, the time is right.

NACFE-DEPOT-Scaling-Report-Cover-Run-On-Less-BEV-Electrification-fleet-trucks
FinditParts, Diesel Laptops partner to streamline heavy-duty truck repairs

Diesel Laptops’ Diesel Decoder plugs into a diagnostic port and sends data to an app. Customers can then order components from FinditParts.

truck-diagnosis-generic
ACT Research notes significant drop in U.S. trailer orders for May

May net trailer orders fell about 46% y/y, while ytd net order activity is down 25% from the same period in 2023.

ACT-net-trailer-orders-down-may-24
Daimler Truck N.A., Salem, Electrada partner to electrify logistics

The companies say the partnership builds on growing zero-emission vehicle integration, and furthers commitments to sustainable trucking.

Daimler-Salem-Electrada-EV-Partnership-2
Other Posts
Beyond a one-size-fits-all trucking decarbonization strategy

Much of the responsibility now falls on the fleet, but that should be a welcome change.

2024-ACT-After-the-Show-Floor-1400
How fleets are using technology to face unique challenges

Video coaching, dash cam evidence, or a fully removable system – users of Samsara technology share how they use it.

Martin Brower expands Volvo EV fleet to deliver to Canadian McDonald’s

Adding 10 Volvo VNR Electric trucks supports McDonald’s goals of reaching net-zero greenhouse gas emissions by 2050.

Martin-brower-McDonald-Volvo-VNR-Electric-truck
Continental, Samsara partner on data-driven fleet management solutions

The companies aim to focus on truck trailers by putting Samsara’s telematics data and Continental’s in-tire sensor readings into one system.

continental-conticonnect-sensor-tire