Navistar Makes a Major Move - to Texas
The Move
Navistar announced last September that they will be making the move to Texas, continuing the successful attempts at growing their place in the commercial truck market. This expansion will cost Navistar around $250 million, bringing with it nearly 600 new jobs to the San Antonio area. The company also announced it will be investing another $125 million into their Huntsville, Alabama facility which is expected to bring in nearly 150 new jobs to the area.
Benefits
It is anticipated that this move will not only improve the overall quality of Navistar products but also lower costs and support the anticipated industry growth. The San Antonio plant will manufacture Class 6-8 commercial trucks, making Navistar a well-rounded manufacturer, complementing its other truck manufacturing plants located in Springfield, Ohio and Escobedo, Mexico. The strategic location of the newest manufacturing plant is located right off of Interstate 35, easily connecting all parts of North America.
Navistar’s announcement comes following news of Toyota’s $391 million investment in their San Antonio facility and the establishment of Texas A&M - San Antonio. A combination of these, many other major corporations establishing roots in the area, and the revamp of infrastructure, South San Antonio has become a booming area with increasing potential.
For Southwest International, this move provides an array of benefits that we are excited to bring on. The logistics costs associated with moving products to each dealer will be lowered and supply chain efficiency will increase. Customer relations will improve, especially for Texans with a brand new Navistar manufacturing center in their backyard. This move will also, again, create hundreds of new jobs for the San Antonio area. Customers will also be able to expect shorter lead times.
Navistar Inc. was able to secure some lofty tax incentives, including a 10-year, 100 percent tax abatement agreement on real and personal property of approximately $7 million, all contingent upon Navistar investing in a total of $235 million in real and personal property over four years and the creation of nearly 600 full-time jobs. The land has already been designated via an ordinance, allotting 426 acres of land as the Navistar Reinvestment Zone. The land is located at 15770 South U.S. Highway 281 on the Southside of San Antonio.
The new state of the art facility will include digital factory, connected machinery, cloud analytics, and a lean manufacturing process, increasing the overall efficiency of the Navistar plant.
Virtual Groundbreaking
The highly anticipated groundbreaking was scheduled for March 2020 but has come to an unfortunate stop due to the global pandemic. Navistar recently held ground breaking online, with Navistar and Texas officials in virtual attendance. Texas governor, Greg Abbot, said this "partnership will fuel Texas' COVID-19 recovery by providing great job opportunities to our diverse and highly skilled manufacturing workforce." Despite setbacks, work is now scheduled to begin July 1 with vehicle production still set to begin early 2022. This comes as a hopeful sign after the pandemic’s unforeseen economic impact.
This move helps Navistar move a step closer toward their 2025 goals of building better relationships with dealers and putting the customer first. Dealerships across the country are excited to see the positive impact on business it will bring.