Corporate Governance

Message from the CEO

Driving improved safety, greater fuel efficiency and reduced environmental impact

ceo

We promote compliance with safety, environmental and social standards throughout our supply chain. Approximately 90% of our vehicles’ content is recyclable, and we continuously review opportunities to increase the use of recycled and recyclable content.

Navistar is committed to finding new ways to make trucking safer, more fuel efficient and environmentally friendly. In 2018, we achieved significant new advances in our products and our operations.

This past year innovations in driver assistance systems that improve safety continued to advance. We were the first manufacturer to make collision mitigation technology standard on Class 8 trucks, and our medium-duty vehicles were the first to use the industry’s leading collision mitigation package, Bendix® Wingman® Fusion™. This year, we became the first in the industry to make electronic stability control standard on school buses as well.

Our 2018 International® LT® Series 625 Class 8 vehicle with an International® A26 engine was demonstrated to deliver better fuel efficiency than comparable competitor vehicles with comparably sized engines. We recently introduced the new International® LT® Series MPG Fuel Efficiency Package to simplify specifying a vehicle for optimal fuel efficiency. Navistar also leads one of four teams in the second phase of the U.S. Department of Energy’s SuperTruck initiative, which aims to more than double the freight efficiency of Class 8 trucks.

The company is advancing alternative powertrains, including electric technologies that are poised to deliver major environmental benefits in the school bus and medium truck markets. Early in fiscal 2018, we unveiled our prototype next-generation electric school bus, the chargE™, which was co-developed with our alliance partner TRATON GROUP, formerly Volkswagen Truck & Bus. The chargE’s national tour included school visits where this “school bus of the future” was used to educate the scientists and engineers of tomorrow.

In 2018 our manufacturing facilities met their goal, established with the Better Plants® program of the U.S. Department of Energy, by accomplishing a 25% reduction in energy consumption since 2010. We promote compliance with safety, environmental and social standards throughout our supply chain. Approximately 90% of our vehicles’ content is recyclable, and we continuously review opportunities to Increase the use of recycled and recyclable content.

Navistar’s commitment to STEM education is the focus of our community activities, which feature support for FIRST Robotics and other initiatives that engage tomorrow’s innovators. In keeping with this focus, the company donates test vehicles, which would otherwise be scrapped, to technical school programs that train the next generation of industry technicians.

Our dedication to STEM mentoring and other community activities is supported by a program called Dollars for Doers, which translates employee volunteer time into monetary donations from Navistar. This program, launched in 2018, delivers the combined impact of volunteerism and targeted giving that benefits the local communities we serve.

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Troy A. Clarke

Chairman, President and Chief Executive Officer