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 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

FTR Trucking Conditions Index improves, but market remains tough for carriers

The outlook is for consistently negative readings for the TCI in 2024.


The latest edition of FTR’s Trucking Conditions Index showed September numbers improving to -8.97 from -12.54 in August. FTR says this is due mostly to more stable fuel prices and modestly stronger freight demand. Market conditions remain quite tough for carriers and the outlook is for consistently negative readings for the TCI into late 2024, FTR said.

The fuel efficiency faceoff begins!

The battle to earn the CDL is over, but the fight to crown a fuel efficiency champion is just getting started.

Canadian grocery fleet to deploy two Volvo VNR Electric trucks

The trucks will run routes in the Montreal area for Loblaw Companies Limited.

FTR: Trailer orders reach highest point of 2023

Orders were at their highest level since December 2022.

Eaton Cummins Endurant XD series transmission now available at Kenworth Mexico

The automated manual transmission is now available in Kenworth T680 and T880 trucks in Mexico and Latin America. 


Other Posts

Clarience Technologies brings Fus1on data platform to trucking fleets

The company also initiates development of Fus1on 2.0, aiming to enhance digital fleet solutions.

Taking the commercial driver’s license test

After struggling with shifting, the CDL test is ahead on this episode of the Fuel Efficiency Faceoff.

Mercedes-Benz delivers truck with 1,000-ton towing capacity to German customer

The maximum trailer load of this Arocs SLT 4463 AS 8×6 is 1,000 tons.

United Natural Foods to deploy eCascadia and VNR Electric trucks

UNFI will combine these trucks with refrigerated trailers cooled by Carrier’s all-electric Vector eCool TRU.