US based truck and engine maker Navistar is planning to stop operations at its Garland truck manufacturing facility by the first half of 2013 to reduce costs and optimise its manufacturing footprint.
Upon closing the Garland operations, Navistar is expected to reduce its operating costs by $25m to $35m annually and record a charges about $10m in the fourth quarter, mainly for employee separation benefits.
Additionally, the company is also expected to record certain pre-tax charges ranging from $30m to $50m during the 2013 fiscal year.
Garland's production work will be transferred to other North America operations that currently build similar models beginning in January 2013.