Navistar International
Careers at Navistar International
Mission
Navistar International’s mission is to deliver a better future with strong products, sound values, and solutions for a changing world.
Business segments
Navistar International is a provider of trucks, diesel engines, buses, and service parts. The firm operates four reportable business segments:
- Truck – Manufactures and distributes Class 4 through 8 trucks, buses, and military vehicles under the International and IC brands, along with the production of proprietary engines, primarily in the North America markets that include the U.S., Canada, and Mexico.
- Parts – Supports the company‘s brands of International commercial trucks, IC buses, and proprietary engines by providing customers with proprietary products along with a wide selection of other standard truck, trailer, and engine service parts.
- Global Operations – Consists of businesses that derive their revenue from outside the firm‘s core North America markets and primarily consists of the operations of its wholly-owned subsidiary, IIAA.
- Financial Services – Provides and manages retail, wholesale, and lease financing of products sold by the Truck and Parts segments and their dealers.
History
In 1831 Cyrus Hall McCormick invented a reaper, a machine designed to reap grain. He then founded a company to market the product, called McCormick Harvesting. Unfortunately, the device met with indifference among local farmers, and ten years passed before his first sale. To compete more aggressively, he launched sales strategies such as a warranty and an extended guarantee.
These techniques helped, and his fortunes changed when reapers started to grow in popularity. He died in 1884, but his son took over and the company’s success continued. In 1902 it merged with four other agricultural machinery producers to form International Harvester. It was considered by some to be a monopoly, but the courts eventually decided it did not stifle competition or raise prices.
The new company expanded its portfolio to include a broad range of tools aimed at speeding food production, including feed grinders, disk harrows, manure spreaders, and harvester combines. In 1907 it unveiled an auto wagon, a high-wheeled vehicle designed to transport farmers to marketplaces. It was a hit, and the firm responded by creating new varieties and rubber tires.
International Harvester began selling its products abroad. By 1912, annual revenues had risen to $125 million, and over 36,000 dealers in 38 countries were marketing the company’s products. The firm invested in coal and iron mines as well as acres of forest property, all of which contributed to raw materials for manufacturing farm machinery. Demand for agricultural equipment increased.
Over the next few decades, the company diversified its offerings, introducing everything from gas turbines and construction equipment to buses, trucks, and related components. In 1986, it changed its name to Navistar International Corporation to reflect a new emphasis on technology. It then divested several of its businesses, leaving the truck and engine segments, for which it is known today.
Business model of Navistar International
Customer Segments
Navistar has a mass market business model, with no significant differentiation between customer segments. The company targets its offerings at firms of all industries and sizes.
Value Proposition
Navistar offers two primary value propositions: accessibility and brand/status.
The company creates accessibility by providing a wide variety of options. It manufactures a broad range of vehicles ranging from military and commercial trucks to school and commercial buses. It also provides service parts and wholesale, retail, and lease financing services for its parts and trucks.
The company has established a powerful brand due to its success. It is responsible for many vehicles on the road in North America as follows:
- In the U.S. and Canada, about one in four Class 6 through 8 vehicles on the road is a Navistar International truck - over half a million trucks.
- In North America, Navistar produces more than a third of all school buses, and provides yellow buses for transportation for nearly half of the children in the U.S.
Navistar operates one of the largest commercial vehicle parts distributions networks in the U.S. Outside the U.S. and Canada, it has the top truck brand in Mexico and a significant part of Latin America. The company is also the largest diesel engine company in Brazil. Lastly, it has won many honors, including the Illinois Governor's Sustainability Award, the WestStart-CALSTART Blue Sky Award, and the Society of Automotive Engineers Environmental Excellence in Transportation Award.
Channels
Navistar’s main channel is its network of almost 1,000 dealer outlets in the United States, Canada, Brazil, and Mexico and over 60 dealers in 90 countries worldwide. The company promotes its offerings through its website, social media pages, and participation in conferences.
Customer Relationships
Navistar’s customer relationship is primarily of a self-service nature. Customers utilize its products and services while having limited interaction with employees.
Key Activities
Navistar’s business model entails designing, developing, and manufacturing its vehicles and parts for customers and delivering associated services.
Key Partners
Navistar’s key partners are the suppliers that provide it with the raw materials, parts, and components it needs to manufacture its products. It primarily utilizes single-source suppliers, and grants them access to a portal where they can view resources such as business process guides.
Key Resources
Navistar’s main resources are its human resources, who include the engineers that design, develop, and manufacture its vehicles and parts. It maintains important physical resources in the form of facilities in North America, South America, Europe, Africa, Asia, and Australia; they are as follows:
- The Truck segment operates nine manufacturing and assembly facilities (eight in the U.S. and one in Mexico)
- The Parts segment leases six distribution centers in the U.S., two in Canada, and one in Mexico
- The Global Operations segment owns and operates manufacturing plants in Brazil and Argentina
- The Financial Services segment leases an office in Mexico
Navistar’s main product development and engineering facilities are located in Lisle, Illinois; Melrose Park, Illinois; Madison Heights, Michigan; New Carlisle, Indiana; and Columbia, South Carolina.
Cost Structure
Navistar has a cost-driven structure, aiming to minimize expenses through significant automation. Its biggest cost driver is cost of products sold, a variable expense. Other major drivers are in the areas of sales/marketing, administration, and engineering/product development, all fixed costs.
Revenue Streams
Navistar has one revenue stream: revenues it generates from the sales of its products to customers. Sales are typically made through the formation of long-term contracts.
Our team
info: Troy Clarke earned a Bachelor‘s degree in Mechanical Engineering at Kettering University and an MBA at the University of Michigan. He previously served as Chief Operating Officer and President of Truck and Engine at Navistar and worked at General Motors.
info: Walter G. Borst earned a Bachelor's Degree in Finance at Kettering University and an MBA at The Leland Stanford Junior University. He previously held many senior roles at General Motors, including Chairman, CEO, and President of GM Asset Management.
info: Steven K. Covey previously held several leadership roles at Navistar, including Chief Ethics Officer, Deputy General Counsel, and Corporate Secretary. He previously worked in private practice with the Chicago law firm of Reese and Covey.
info: Samara A. Strycker earned a graduate degree at Syracuse University. She previously held a number of leadership roles at GE Healthcare, including Regional Controller and Assistant Controller of GE Healthcare, and worked at PricewaterhouseCoopers.
