| HBS Case Collection
As a consequence of laying off half its workforce in a massive downsizing program, the company--a large manufacturer of medium and heavy trucks--struggles with a huge ($2.6 billion) liability for retiree medical costs. Although the company has promised its retirees (and their families) full lifetime medical coverage, it must negotiate a substantial reduction in these benefits to avoid bankruptcy.
Keywords: Negotiation Process;
Insolvency and Bankruptcy;
Gilson, Stuart C., and Jeremy Cott. "Navistar International." Harvard Business School Case 295-030, November 1994.