FORT WAYNE, Ind. (Indiana’s NewsCenter) – Navistar is paying at least $29 million to uproot its operations from Fort Wayne to Illinois, despite the company making $402 million in net income for 2011.
Since the move to Lisle, Ill. Navistar's had the best financial year yet. According to a press release, Navistar earned $402 million in net income for 2011—their best full-year earnings since 2008. But despite their financial success, it’s costing the truck and engine manufacturing company $29 million to make the move, according to the Securities and Exchange Commission.
Here’s the breakdown of the costs:
• $13 million for employee terminations and benefits.
• $7 million for pension and post-retirement benefits.
• $9 million for relocation expenses.
Navistar says it plans to pay the $29 million over the next two to three years.
Although, most of Navistar’s operations have already moved to Lisle, there is still activity at the plant in Fort Wayne. Steve Schrier, with Navistar's truck division, says most of the operations will ultimately end up at the plant in Lisle.
Navistar announced the move in September of 2010, and since then hundreds of employees have been laid off. But as of the beginning of this year, approximately 500 employees still remain at the Fort Wayne location. Schrier says over time, they plan to slowly phase out operations, but have not finalized any plans or timelines. However, Schrier says certain operations, such as the truck test track, will stay in Fort Wayne well into the future, but Navistar will only need 30 to 40 workers to staff and operate the test track.
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