Navistar International Corp (NYSE:NAV-D) shares were down 7.36% to $4.28 on Friday as traders likely booked profits ahead of the weekend. Shares are trading in a 52-week range of $1.92 to $8.00. The company has a market cap of $1 billion.
Last week, Navistar International Corp announced that General Motors has partnered with the company to build cutaway vans starting next year. This move should free up additional capacity for the automobile manufacturing company’s midsize truck production facility in Missouri while providing additional revenue streams for Navistar.
In particular, Navistar International Corp will begin producing the vans that can be configured as utility vehicles, ambulances, shuttle buses or school buses for commercial customers in the first part of 2017. This will be part of a multi-year contract that can add at least 300 jobs and a second shift at its plant in Ohio.
So far, the company has declined to share further details on the costs of this agreement, but Navistar International Corp president of operations Persio Lisboa has mentioned that they are pleased to partner with GM.
Our Springfield plant is an important part of our manufacturing footprint, and we’ve been preparing it for a higher volume concentration of light- and medium-duty products as part of our manufacturing strategy. This is an important step towards our goal to drive automotive quality into the commercial vehicle industry,” said Lisboa.
Prior to this partnership, Navistar and GM have announced a long-term contract to develop and build medium-duty trucks at the Springfield plant beginning in 2018, adding roughly 300 jobs and an additional $12 million investment in the plant.
Navistar International Corp is a holding company that is a manufacturer of International brand commercial and military trucks, MaxxForce brand diesel engines, IC Bus brand school and commercial buses, as well as a provider of service parts for trucks and diesel engines.
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