Navistar Says Mexico Violence Could Cause Pullout

Navistar Says Mexico Violence Could Cause Pullout

Concerned about continuing levels of organized crime and drug-related violence in Mexico, Navistar International, manufacturer of on-highway trucks and buses as well as diesel engines, suggested it could abandon production facilities in the nation because of worries about political stability. Dan Ulstan, Navistar’s CEO, said in a conference call that the violence in the northern Monterray area, where Navistar has a longstanding truck and bus assembly plant, has been “unsettling,” and added, “we have the ability to move production around.”

Automakers from around the world have significant production and component-making operations in Mexico and industry watchers have speculated as to when the country’s ongoing criminal violence might start to elicit response about the security of personnel in Mexican facilities. Ulstan’s comment could pave the way for increasing corporate pressure for Mexico to address the situation that has seen tens of thousands die in violent criminal-related activity in recent years.

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