October 30, 2012 / 10:05 PM / 5 years ago

Navistar to shut Garland truck plant, cut 900 jobs

Oct 30 (Reuters) - U.S. truck and engine maker Navistar International Corp said it will close its manufacturing plant in Garland, Texas and cut 900 jobs to reduce costs.

The company said earlier this year that about 500 employees had accepted buyouts in the third quarter and that another 200 would probably be laid off in the fourth quarter.

The company had 20,800 employees worldwide as of Oct. 31, 2011, according to a filing with the U.S. Securities and Exchange Commission.

The Garland plant closure is expected to reduce Navistar’s operating costs by $25-$35 million annually, it said.

The company will record a charge of about $10 million in the fourth quarter, mainly related to employee separation benefits.

It also expects to record certain pretax charges of $30-$50 million, dependent upon determination of fair value, Navistar said.

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