Dear Navistar Stakeholder,

If you’re visiting this Website, you likely know about Navistar. You know our proud history, and you know our current product leadership in markets like commercial vehicles, diesel engines and service parts distribution. You might also know that driving our leadership position are 16,000 terrific employees worldwide, working hard to create world-class products. But you might be less familiar with the challenges we face, resulting from the intense competition in all of our product markets. That competition is expanding globally and getting stronger every day.

To thrive in this intensely competitive global marketplace, players need flexible and cost-competitive operations that can quickly adjust to changing demands and increasing expectations. It’s about safety, quality, efficiency and cost. Our customers demand best-in-class in all of those areas. And it’s also about creating real job security for our employees, which is achieved by competing and winning in these difficult markets.

So it will come as no surprise that the company expects these same issues – competitive costs, flexible operations, safety, quality and real job security – to dominate our discussions with the UAW.

Navistar’s relationship with the UAW goes back many years. We’ve worked together to overcome many challenges. Now, we must do so yet again. We must work together to find ways that address the differences between how our union-represented facilities operate and how our competitors operate. This is the only way to continue to provide true job security for employees and retirement security for our retirees.

Though significant for Navistar, the changes needed are not unprecedented. A dramatic shift has occurred in recent years from traditional union contracts to ones that make better sense to compete globally today.

We will make every effort to achieve a competitive and fair agreement for the 2,000 employees at our UAW-represented facilities affected by this contract. In the event that our joint efforts cannot reach a competitive agreement, it’s important for our customers to know that we have solid plans in place that will allow us to continue to operate the businesses and deliver you the quality products you expect from us.

Sincerely,

Greg Elliott, SVP, Human Resources and Administration