Navistar not consolidating in Illinois

FORT WAYNE, Ind. (WANE) - Navistar International Corp. has dropped plans to consolidate its World Headquarters in Lisle, Illinois. The move might have meant the loss of hundreds of jobs at the Navistar Truck Design and Technology Center in Fort Wayne.

In a letter to Lisle's mayor dated May, 25, Navistar Chairman, President and CEO Daniel C. Ustian wrote the company would, "...step back and revisit other locations we previously explored." 

Ustain blames the decision on a small group of Lisle residents who fought to keep Navistar from locating there.  According to Ustain, the residents have jeopardized the company's image.

In Fort Wayne, Navistar employs nearly 1,300 people at its Meyer Road office and a Wayne Trace office, with employees at both facilities largely working on engineering and design for some of the Navistar/International line of products.

Fort Wayne Mayor Tom Henry issued the following statement after hearing about Navistar's decision:

"When it comes to Navistar, our message has been consistent from day one: There is no better place to design the next generation of highly efficient, heavy-duty trucks than here in Fort Wayne, Indiana. I want Navistar and its great employees to remain here for generations to come. Working with the Alliance and our local economic development partners, we’re doing everything that we can to make that happen."

Navistar began truck production in Fort Wayne back in 1923. In 1979, the company employed 10,000 people in Fort Wayne.  In 1983, the truck manufacturing facility on the east side was closed and the work was moved to Springfield, Ohio.

The City of Fort Wayne reports that Navistar was given $8 million in tax abatements on the Meyer Road property in 1999, with a $100,000 job creation grant from the City of Fort Wayne in 2005; along with a $500,000 grant from the City of Fort Wayne in 2006 that is disbursed annually through 2010.