Navistar reorganizes truck business, expects job cuts

Navistar International Corp., the world's fourth-largest truckmaker, said it plans to reorganize its truck business into four new units to improve operations and may cut jobs.

Navistar, based in Warrenville, is dividing the business into North American truck operations, a global truck unit, a global bus business and a defense unit, it said today in a statement carried by Business Wire. The changes will result in ``some targeted job reductions'' the company said, without elaborating.

``We must look at ways to continue our forward momentum around customers, new products and growth opportunities,'' Dan Ustian, Navistar's president and chief executive officer, said in the statement.

The company, which last month announced plans to eliminate 252 jobs at a Mississippi plant that makes blast-resistant trucks, wants to expand business with the U.S. military to ease swings in North American orders for commercial vehicles. Navistar is expanding international truck and bus and military vehicle sales to reach a goal of $15 billion in annual revenue by 2009.

Navistar dropped 12 percent, or $3.05, to $23.07 in New York Stock Exchange composite trading, before the announcement was released. The shares have fallen 57 percent this year.