"We've determined that leveraging our suppliers for these components will reduce our engine costs, improve our overall manufacturing capacity utilization, and free up additional resources to invest in our core North America truck and parts business," Persio Lisboa, Lisle-based Navistar's president of operations, said in a statement today.
The move is expected to cut operating costs about $13 million a year, the company said. Navistar took an $11 million charge in the fourth quarter related to the move and expects to take another $40 million in charges in the first half of 2015.
The company said it would complete closing the foundry by next summer.
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