Navistar names Troy Clarke as CEO

Thu Mar 7, 2013 8:03am EST
 
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(Reuters) - Truck maker Navistar International Corp NAV.N appointed Chief Operating Officer Troy Clarke as its chief executive, effective April 15, replacing interim CEO Lewis Campbell.

Navistar in August ousted then-CEO Daniel Ustian and appointed Campbell, a former Textron Inc TXT.N chief, as CEO on an interim basis, after the company's bet on a new generation of diesel engines failed to live up to expectations.

The company separated the roles of CEO and chairman, naming James Keyes as its new non-executive chairman, it said on Thursday.

"We believe that separating the chairman and CEO roles at this time will enable Troy to focus exclusively on continuing to successfully execute the company's turnaround plan and putting the company on a path to profitability entering fiscal year 2014," Keyes said.

Lisle, Illinois-based Navistar, which reported a narrower first-quarter loss, said it was on track to exceed its goal of reducing structural costs by $175 million this year.

The company said it has also identified additional cost savings to further lower its breakeven point in 2013.

Navistar has been forced to cut costs as its North American business faltered after it failed to win U.S. regulatory approval for a new diesel-engine technology.

Activist investor Carl Icahn, who owns a near 15 percent stake in Navistar, proposed merging the company with rival Oshkosh Corp OSK.N in 2011. Former CEO Ustian had supported Icahn's proposal, but Oshkosh was against it.

Icahn tried to take full control of Oshkosh last year but failed to win shareholder support.

(Reporting by A. Ananthalakshmi in Bangalore; Editing by Rodney Joyce, Supriya Kurane)

 
Exterior of Navistar office is seen in Lisle, Illinois, October 4, 2012. REUTERS/Jim Young