Navistar brings in GM executive as CFO
(Reuters) - Truck and engine maker Navistar International Corp (NAV.N), in the midst of a revamp after a disastrous engine redesign, brought in General Motors Co (GM.N) executive Walter Borst to replace departing Chief Financial Officer Andrew Cederoth.
Borst will report to a former GM colleague, Navistar Chief Executive Troy Clarke, who took the top job in March and has since made several leadership changes.
Clarke, Navistar's former chief operating officer, took over as CEO after a brief stint by turnaround specialist Lewis Campbell, another GM alumnus.
"Clarke's been assembling his own team for the last few quarters, and this is just part of that process," Jefferies & Co analyst Stephen Volkmann said.
Navistar said on Monday that Cederoth, who has been CFO since 2009, would leave by the end of June.
Other recent management changes include a new head of the company's North America truck and parts business and a new quality chief.
Borst's appointment comes 10 months after Navistar ousted long-time CEO Daniel Ustian after the company's radical new diesel engine technology failed to win regulatory approval, forcing it to source engines from rival Cummins Inc (CMI.N).
Navistar reported a bigger quarterly loss earlier this month due to higher warranty costs and lost sales as it moves to another, more conventional, engine technology.
"(Borst) has proven himself ... at one of the world's largest vehicle manufacturers, all of which makes him the right person to lead our financial operations and functions going forward," Clarke said.
Borst, 51, was CEO of GM Asset Management, responsible for managing about $85 billion, Navistar said in a statement on Thursday.
He had served as GM's treasurer for six years from 2003.
Clarke headed GM North America between 2006 and 2009.
Navistar shares were up 2 percent at $28.02 in midday trading on the New York Stock Exchange. It has lost about a fifth of its value since its second-quarter results were released on June 10.