Wakarusa: Navistar truck 'deal's done'

WAKARUSA -- Navistar International Corp. is moving ahead with plans to build 400 electric trucks in Elkhart County in 2010.

The Illinois-based truck maker has signed an agreement with Modec Limited of the United Kingdom to create the Navistar-Modec EV Alliance LLC, according to a release from Navistar. The joint venture will produce all-electric commercial trucks to be sold in North, Central and South America.

Few details were released beyond the public announcement but Navistar spokesman Roy Wiley said the production line would probably be put in one of the two facilities the company owns on Nelson's Parkway. When the manufacturing will begin and how much hiring will take place has not been determined, Wiley said.

"The deal's done," he said, referring to the signed agreement. "That's the big news."

Navistar came to Wakarusa when it purchased the former Monaco Coach Corp. out of bankruptcy in the summer of 2009.

Tom Roeder, town manager, welcomed the news. He called Navistar a "great company" and said building the electric trucks in his town "would be wonderful."

Since Navistar also owns the former Custom Chassis plant on S.R. 19 in Elkhart, Roeder had suspected production would be put there. Although locating in Wakarusa is especially good for that community, Roeder said all of Elkhart County will benefit as the Navistar venture will bring new jobs and will help to diversify the local economy.

"Right now we're just concerned about jobs," Roeder said, adding that he hopes they are good paying jobs.

To develop and build the trucks, the U.S. Department of Energy awarded Navistar $39.2 million in government stimulus funding. President Barack Obama announced that grant and several others from the floor of the Monaco RV plant in August.

Navistar stated it intends to produce 400 electric vehicles in 2010 and expects to be building several thousand annually within two years. The trucks, designed for urban stop-and-go driving, will rely solely on plug-in power and are projected to have a range of up to 100 miles per charge. They will be able to carry in excess of 2 tons and produce no tailpipe emissions.

The trucks will be assembled in Wakarusa with the parts being supplied through the joint venture, Wiley said.

As for jobs, Navistar stated it anticipates the electric truck business will create up to 700 new positions. However not all those jobs will come to Elkhart County since that estimate includes employment opportunities which will open at supplier companies in North America.

Still, Wiley said most of the new jobs will probably go to Elkhart County residents either by hiring workers from outside the company or by shifting employees to different positions within the operation.

"Jobs will be created," Wiley said. "People will be working."