Navistar announced a $125 million investment in its Huntsville, Alabama, engine plant as part of a plan to begin producing next-generation big-bore diesel engines developed with its European partner, Traton, in the future.

Navistar makes International brand diesel engines at the plant, and plans to make the new investments over the next three years.

The principal engine currently built at Navistar's Huntsville plant is the International A26, a 12.4L big-bore engine offered in Class 8 on-highway trucks such as the International LT Series and RH Series, as well as in vocational trucks such as the International HV Series and HX Series.

According to local news reports, part of the expansion is relocating to Huntsville a gear box assembly line.

In 2017, Navistar and VW told reporters that the two companies would collaborate on a fully integrated, next-generation diesel big bore powertrains for North America, launching in 2021. It also said at the time that it expects to be in a position to launch its first medium-duty electric powered vehicle for the U.S. and Canadian markets in late 2019 or early 2020. 

"Over the last two decades, the state of Alabama has been a wonderful partner for Navistar as we have developed and produced big-bore engines and other products in the state," said Persio Lisboa, Navistar's executive vice president and chief operating officer. "Today, we are excited to have the opportunity to expand our presence in Alabama, while adding to our array of next-generation products."

In 2014, as part of its turnaround efforts, the company announced it was moving its mid-range engine production from Huntsville to its Melrose Park, Illinois, plant.