Navistar Inaugurates Assembly Plant in Mexico

First New Plant in 20 Years Will Build Heavy, Medium Trucks

Apr 21, 1998, 01:00 ET from Navistar International Corporation

    CHICAGO, April 21 /PRNewswire/ -- Navistar International Corporation
 (NYSE:   NAV) today announced the opening of its new $167 million truck assembly
 facility in Escobedo, Nuevo Leon, Mexico.  Approved by Navistar's board in
 October, 1996, the 700,000 square-foot plant, the company's first new
 assembly plant in 20 years, was constructed in only 12 months and is designed
 to meet Mexican and Latin American truck and urban bus demand.
     "The new assembly plant will enable us to continue providing customers in
 Mexico and Latin America with the highest quality vehicles and service," said
 John R. Horne, chairman, president and chief executive officer.  "We are
 driven to better serve new and current customers, many of whom operate in
 Mexico and require a complete production, sales and service network closer to
 where they do business."
     Though the company has had a presence in Mexico for more than 60 years,
 Navistar has moved aggressively during the past two years to expand its
 presence as it continued to drive its five-point truck strategy: expanding
 internationally, focusing truck assembly plants, simplifying current product
 lines, investing in new product development, and achieving competitive wages,
 benefits and productivity.
     Navistar's market share in Mexico has grown in 1998 to 19.1 percent, up
 from 12.2 percent in 1997.  The company currently serves customers in Mexico
 through a 42-location dealer network and a parts distribution center near
 Mexico City.
     The International(R) brand medium and heavy trucks and urban buses built
 in Mexico will be assembled using International diesel engines manufactured at
 the company's Melrose Park, Ill. facility and cab assemblies stamped at
 the Navistar.s Springfield, Ohio truck plant.  The trucks also will meet
 Mexico's local content requirements of 50 percent.
     The opening of the plant gives the company a full range of manufacturing,
 marketing and distribution capabilities in Mexico and enables Navistar to
 serve the growing Mexican market as well as Central and South America.  The
 plant has the capacity to produce 65 medium and heavy trucks and urban
 buses per shift, per day.
     "This plant is a uniquely designed, world-class facility that features
 state-of-the-art systems and processes that will help us achieve the highest
 standards of excellence in our operations and attain our quality and
 productivity goals," said Don DeFosset, executive vice president and president
 truck group.
     Following a ribbon-cutting ceremony April 22, Horne will be accompanied by
 Mexico's Secretary of Commerce and Industrial Promotion, Herminio Blanco, who
 will drive the first truck out of the plant; and the Governor of the state
 of Nuevo Leon, Fernando Canales Clariond.
     Navistar International Corporation, with world headquarters in Chicago and
 1997 annual sales of $6.4 billion, is the leading North American producer of
 International brand heavy and medium trucks and school buses.  Navistar
 maintained its position as the leader in the combined U.S. and Canadian retail
 markets for medium and heavy trucks and school buses in the first quarter,
 achieving a 28.6 percent market share, which is 2.2 percentage points higher
 than a year ago.  The company is also a worldwide leader in the manufacture of
 International brand mid-range diesel engines which are produced in a range
 of 160 to 300 horsepower.

SOURCE Navistar International Corporation