You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • Frontier seeks 50 for sales
    Frontier Communications is looking for 50 people.The video and Internet services company from Stamford, Conn., said Thursday it will host a job fair in hopes of hiring 50 sales consultants for the company’s Fort Wayne call center.
  • Nissan-Infiniti dealer expanding operation
    Another auto dealership is receiving a spit shine.Fort Wayne Nissan-Infiniti, 4909 Lima Road, is in the midst of a $2 million renovation that includes a 7,000-square-foot addition, featuring a new customer lounge with flat-screen TVs,
  • Facebook buyers may see refund
    Morgan Stanley, the lead investment bank in Facebook’s troubled initial public offering, will compensate retail investors who overpaid when they bought Facebook’s stock in Friday’s IPO, according to a source familiar with the matter.
Advertisement
File photo

Navistar better off staying, study says

A cost analysis indicates Navistar International Corp. would save money doing business in Fort Wayne, but the company seems set on consolidating its operations just outside Chicago.

An Ernst & Young 2009 comparison study received by The Journal Gazette on Thursday states that operating expenses in Lisle, Ill., would exceed costs in Fort Wayne by more than $31 million a year.

Additional expenses, such as labor, taxes and fuel, surpass $33 million annually, according to the document.

Don Sharp, vice president and chief information officer for Navistar, confirmed the authenticity of the report but said it’s not uncommon for companies to authorize such studies as they analyze operations.

There’s been no decision regarding the 800 employees working at the Navistar Truck Design and Technology Center in Fort Wayne, he said.

Even so, the Chicago Tribune reported this month that the company received the go-ahead on an intergovernmental agreement that would clear the way for Navistar to relocate its Warrenville, Ill., headquarters a couple miles east to Lisle.

Navistar has coveted an 87-acre former Alcatel-Lucent property that spans 1.2 million square feet in Lisle. And the $34 million price tag may seem exorbitant in the present economy, but “it would cost 10 times as much to build a building like that today,” said Sharp, who is overseeing the project.

“(Initial) operation costs are just one part of the equation,” he said.

“We’ve done similar studies in Alabama and a handful of other states, but we haven’t reached any decisions on where people are going yet,” Sharp said.

Fort Wayne Mayor Tom Henry said in a statement that “Hoosiers tend to be modest.”

“We like to let the facts speak for themselves,” Henry said, “and the Ernst & Young report spells it out clearly: There is no better place for Navistar to design the next generation of highly efficient, heavy-duty trucks than here in Fort Wayne, Ind. It’s a place that Navistar can build for the future and prosper for generations to come.”

Sharp said Navistar will continue to meet with planning and zoning officials in Lisle throughout May.

Andi Udris, president of the Fort Wayne-Allen County Economic Development Alliance, isn’t shocked by Navistar’s moves.

“We’re just trying to keep as many jobs here as possible,” he said.

“They’re looking at economies of scale and money they could save by having everything in one place. We’re still trying to have good dialogue with them.”

Fort Wayne leaders are offering Navistar an unspecified incentive package to keep the company here.

Meanwhile, some Lisle residents say the noise, emissions and other issues related to the testing of engines and heavy trucks would hurt their quality of life and property values in the upscale community.

“It all comes down to Navistar making a business decision,” Lisle Mayor Joe Broda said.

“What they’re proposing would not change the community’s character. We had the same concerns when Lucent came in.”

pwyche@jg.net