Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Navistar Shutting Down Workhorse as Part of Cost-Cutting

CORRECTED -- Workhorse Custom Chassis is going out of business and is due to shut down in October, though Navistar International Corp., its owner since 2005, is saying little about it

by Staff
September 11, 2012
Navistar Shutting Down Workhorse as Part of Cost-Cutting

A new nose for the Navistar-owned Workhorse was featured in 2007.

3 min to read


CORRECTED -- Workhorse Custom Chassis is going out of business and is due to shut down in October, though Navistar International Corp., its owner since 2005, is saying little about it.



Spokesman Steve Schrier confirmed the news and responded to questions by referring to statements in the company's recent 10Q disclosures to the federal Securities & Exchange Commission.

Workhorse stopped making its W42 and W62 van chassis early this year, one competitor said, and final production is apparently of motor home chassis. Production should wrap up this month, a worker at the plant in Union City, Ind., said before directing further questions to Navistar headquarters in Lisle, Ill.

Ad Loading...
eStar Still Alive



However, Navistar's eStar electric van, though managerially connected to Workhorse, remains an active product, Schrier said. Introduced in 2009 with the help of a federal grant, eStar captured early sales from several customers for use in California, which encourages use of zero-emissions vehicles with its own grants.

Nonetheless, "the commercial viability of electric vehicles is what drives sales in this market," Schrier said. With no engine or conventional drivetrain and the comparative simplicity of electric components, maintenance and operating costs are very low, even if purchase prices are high.

And although A123 Systems, which supplies batteries for the eStar and other electric vans, has been struggling financially and currently is the subject of a controversial investment proposal from a Chinese firm, "individual suppliers are not impacting our eStar business," Schrier said. About 100 were built at the Navistar-Monaco plant in Wakarusa, Ind., last year.

Workhorse Acquisition



Workhorse was started in 1998 by investors who took over production and sales of General Motors' popular P-series Stepvan chassis when GM dropped it. GM gasoline and diesel engines powered vehicles which, like competitors' chassis, got bodies from outside suppliers. Large delivery fleets like FedEx, UPS and Frito-Lay were among its customers.

Navistar acquired Workhorse seven years ago and it seemed a good fit, as Navistar diesels would find another outlet, even if emphasis was still on gasoline.

It also seemed that the new subsidiary might be strengthened through its association with a big corporation whose history from the 1930s into the '60s included the popular Metro van. For a short time Workhorse offered an integrated chassis-body product called MetroStar.

Recession Hits



The Great Recession a few years later hurt both parties, and Navistar executives' losing bet on their non-SCR "in-cylinder solution" to diesel emissions limits contributed to heavy financial losses. These prompted serious cost-cutting.

Two financial reviews showed that Workhorse could not recover investments in it, the 10Q statement said. So earlier this year Navistar ordered Workhorse to stop accepting orders for W-series chassis and to begin to "idle" the business. It has taken a $10 million charge as part of shutdown expenses.

Schrier said Navistar would continue to provide warranty and parts and service support for existing Workhorse chassis.

Ad Loading...
Gasoline Power



Executives at Freightliner Custom Chassis Corp., a major competitor, said one result of Workhorse's closure has been more interest from customers in gasoline power, something Workhorse specialized in. FCCC last year began offering General Motors' 6-liter Vortec 6000 gasoline V-8, the same engine that Workhorse used toward the end.

Until late last week, Navistar's website listed Workhorse as one of its truck brands and offered a link to the Workhorse site. A newly redesigned website now lists only International and Mahindra International as Navistar's truck brands.

But Workhorse's site as of this writing is still active and describes the W series commercial and motorhome chassis, and gives no hint of their demise.

Updated 9:30 a.m. EDT to include a statement that Navistar would continue to provide warranty and parts and service support.

Corrected 12:10 p.m. EDT to indicate A123 is not in bankruptcy. We regret the error.

More Fleet Management

Red Kodiak-branded autonomous tractor with Charger-branded trailer backed up to warehouse
Fleet Management•October 30, 2026

Kodiak Lines Up Fleets for Driverless Trucking

An agreement for 75 trucks, a new Texas freight lane, and progress on safety validation move Kodiak closer to its planned driverless highway launch.

Read More →
Illustration with Star of David and EEOC logo
Fleet Management•by News/Media Release•October 28, 2026

ITS Logistics Settles Religious Harassment Case

The Nevada-based logistics firm agreed to pay more than $396,000 to settle a religious harassment charge involving an employee's Jewish identity.

Read More →
Truck on divided interstate highway driving toward sunrise
Fleet Management•October 27, 2026

Your Trucks Are Busy. That Doesn’t Mean They’re Winning.

High utilization doesn’t always mean strong margins. Looking beyond the current load can help fleets make better dispatch decisions and get more value from each truck’s time.

Read More →
Ad Loading...
ATA economist Bob Costello speaking beside a graph showing truckload operating costs rising as freight revenue per mile declined after 2022.
Fleet Management•by Deborah Lockridge•October 22, 2026

Why This Trucking Recovery Is Different

Freight demand remains sluggish, but rising costs and tougher enforcement have taken enough capacity out of the market to change the outlook for motor carriers.

Read More →
PS Coach tablet interface showing a driver’s coaching inbox, safety event video and coaching advice for a harsh-braking event.
Fleet Management•by News/Media Release•October 21, 2026

Platform Science Adds Dispatch and Safety Tools

Four additions to PS Fleet help fleets monitor loads, manage driver coaching, share truck locations and adjust video system settings.

Read More →
Screen capture showing PrePass Intelligence data on tolls
Fleet Management•by News/Media Release•October 21, 2026

PrePass Intelligence Mines Fleet Bypass, Toll and Safety Data

PrePass Intelligence helps fleets measure bypass savings, flag potential toll overcharges, and spot suspicious transactions by combining data from separate systems.

Read More →
Ad Loading...
Computer screen showing examples of what fleets could ask Motive AI Agents to do
Fleet Management•by Staff•October 20, 2026

Motive Adds AI Agents for Fleet Operations

New tools automate follow-up on fleet data, from maintenance work orders to driver alerts, with two-way voice conversations planned for later this year.

Read More →
Graphic art with a heavy-duty tractor trailer and a work truck with the words "trivia lunch"
Fleet Management•by Lauren Fletcher•October 19, 2026

Can You Beat Our Trucking Trivia Challenge?

Test your truck knowledge with 19 trivia questions from Heavy Duty Trucking Exchange. Can you keep up with the fleet pros?

Read More →
Four horizontal and two vertical video screens show different aspects of BeyondTruck's new compatibility engine
Fleet Management•by Deborah Lockridge•October 19, 2026

BeyondTrucks Adds Rules Checks to Dispatch

New Compatibility Engine checks driver qualifications, equipment requirements and fleet policies before loads are dispatched.

Read More →
Ad Loading...
Gloved hand fueling a truck beside a graphic listing ATRI’s top three trucking concerns for 2026: fuel prices, lawsuit abuse reform and CSA.
Fleet Management•by Deborah Lockridge•October 19, 2026

Diesel Prices Hijack Trucking’s Worry List

ATRI’s annual survey finds cautious optimism about freight, but diesel costs, litigation, and insurance continue to squeeze fleets. Drivers have different priorities on several issues.

Read More →