UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 11-K


(Mark One) [ X ]    ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
                    SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]


For the fiscal year end December 31, 1998

                                       OR


           [   ]    TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
                    SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]


For the transition period from       to
                               -----    -----

Commission file number 1-9618



                   NAVISTAR INTERNATIONAL TRANSPORTATION CORP.
                      401(k) PLAN FOR REPRESENTED EMPLOYEES
                   -------------------------------------------
                            (Full Title of the Plan)




                       NAVISTAR INTERNATIONAL CORPORATION
                       ----------------------------------
                         455 North Cityfront Plaza Drive
                             Chicago, Illinois 60611

                 (Name of Issuer of the securities held pursuant
         to the plan and the address of its principal executive office)


<PAGE>


     PAGE 2


                              REQUIRED INFORMATION


         Navistar International Transportation Corp. 401(k) Plan for Represented
Employees ("Plan") is subject to the Employee  Retirement Income Security Act of
1974  ("ERISA").  Therefore,  in lieu of the  requirements  of Items 1-3 of Form
11-K, the financial statements and schedules of the Plan as of December 31, 1998
and 1997,  and for the years then ended,  which have been prepared in accordance
with the  financial  reporting  requirements  of ERISA,  are attached  hereto as
Appendix 1 and incorporated herein by this reference.


                                    EXHIBITS
                                    --------


Exhibit Number               Description                              11-K Page
--------------               -----------                              ---------

     23                      Consent of Deloitte & Touche LLP             E-1


                                   SIGNATURES


         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the Plan  Administrator  for the Plan has duly caused  this annual  report to be
signed on the Plan's behalf by the undersigned hereunto duly authorized.



                             Navistar International Transportation Corp.
                             -------------------------------------------
                             401(k) Plan for Represented Employees
                             -------------------------------------

                                       By:   /s/ Mark T. Schwetschenau
                                             -------------------------
                                       Name:     Mark T. Schwetschenau
                                       Title:    Member, Navistar International
                                                 Transportation Corp.
                                                 Pension Fund Investment
                                                 Committee


                                                 June 2, 1999


<PAGE>

                                                                      APPENDIX 1

NAVISTAR INTERNATIONAL TRANSPORTATION CORP.
401(k) PLAN FOR REPRESENTED EMPLOYEES
-------------------------------------------


    TABLE OF CONTENTS                                                     Page
    -----------------                                                     ----

    INDEPENDENT AUDITORS' REPORT                                            1

    FINANCIAL STATEMENTS AS OF DECEMBER 31, 1998 AND 1997
    AND FOR THE YEARS THEN ENDED:
       Statements of Net Assets Available for Benefits                      2
       Statements of Changes in Net Assets Available for Benefits           3
       Notes to Financial Statements                                       4-9


    SUPPLEMENTAL SCHEDULES AS OF DECEMBER 31, 1998 AND
    FOR THE YEAR THEN ENDED:
       Schedule of Assets Held for Investment Purposes - Item 27(a)        10
       Schedule of Reportable Transactions - Item 27(d)                  11-12




    All other  schedules  are omitted  because of the absence of the  conditions
    under which they are required.


--------------------------------------------------------------------------------


<PAGE>


INDEPENDENT AUDITORS' REPORT

Navistar International Transportation Corp:

We  have  audited  the  accompanying   financial   statements  of  the  Navistar
International  Transportation  Corp. 401(k) Plan for Represented  Employees (the
"Plan") as of December 31, 1998 and 1997,  and for the years then ended,  listed
in the table of contents.  These financial  statements are the responsibility of
the  Plan's  management.  Our  responsibility  is to express an opinion on these
financial statements based on our audits.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our  opinion,  such  financial  statements  present  fairly,  in all material
respects,  the net assets  available for benefits of the Plan as of December 31,
1998 and 1997 and the changes in net assets available for benefits for the years
then ended, in conformity with generally accepted accounting principles.

Our audits were conducted for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying  supplemental  schedules listed in
the table of  contents  are  presented  for the  purpose of  complying  with the
Department of Labor's Rules and Regulations  for Reporting and Disclosure  under
the Employee  Retirement Income Security Act of 1974 and are not a required part
of the basic financial statements. These schedules are the responsibility of the
Plan's  management.  Such  supplemental  schedules  have been  subjected  to the
auditing procedures applied in the audit of the basic 1998 financial  statements
and, in our opinion,  are fairly stated in all material respects when considered
in relation to the basic 1998 financial statements taken as a whole.


DELOITTE & TOUCHE LLP
May 14, 1999
Chicago, Illinois


                                     - 1 -


<PAGE>


NAVISTAR INTERNATIONAL TRANSPORTATION CORP.
401(k) PLAN FOR REPRESENTED EMPLOYEES
-------------------------------------------

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 1998 AND 1997
-----------------------------------------------

ASSETS                                                     1998          1997
                                                           ----          ----

INVESTMENTS:
Navistar Pooled Stock Master Trust Fund -
  at market value
  (1998 - 391,992  units of participation,
  cost $2,574,365 and 1997 - 114,903 units of       $   2,939,938  $     756,064
  participation, cost $722,568)
AmericanExpress Trust Collective  Income Fund II
  at market value (1998 - 943,476
  shares, cost $15,539,300 and 1997 - 798,899 shares,
  cost $12,487,596)                                    17,401,048     13,897,125
American Express Trust Equity Index Fund -
  at market value (1998 - 685,317 shares,
  cost $15,597,416 and 1997 - 551,890 shares,
  cost $10,395,878)                                    23,997,051     15,040,117
IDS Selective Fund (Y) - at market value
  (1998 - 1,369,574 shares, cost $12,611,700
  and 1997 - 1,044,121 shares, cost $9,585,517)        12,701,428      9,585,028
IDS New Dimensions Fund (Y) - at market value
  (1998 - 2,049,459 shares, cost $41,752,569
  and 1997 - 1,775,841 shares, cost $32,139,217)       59,116,639     42,375,128
Templeton Foreign Fund - at market value
  (1998 - 646,434 shares, cost $6,313,069
  and 1997 - 597,887 shares, cost $6,044,373)           5,423,581      5,948,980
Participant loans                                       3,864,609      2,870,446
                                                    -------------  -------------
  Total investments                                   125,444,294     90,472,888

RECEIVABLES:
Participant pre-tax contributions                         694,597        715,534
Employer discretionary retirement contributions           110,443         45,281
Employer matching contributions                            11,802              -
                                                    -------------  -------------
Total receivables                                         816,842        760,815
                                                    -------------  -------------

NET ASSETS AVAILABLE FOR BENEFITS                   $ 126,261,136  $  91,233,703
                                                    =============  =============

See notes to financial statements.
--------------------------------------------------------------------------------


                                     - 2 -


<PAGE>


NAVISTAR INTERNATIONAL TRANSPORTATION CORP.
401(k) PLAN FOR REPRESENTED EMPLOYEES
-------------------------------------------

STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997
----------------------------------------------------------

                                                           1998          1997
                                                           ----          ----
ADDITIONS TO NET ASSETS:
Investment income:
  Net realized/unrealized appreciation
    in fair value of investments                      $ 14,856,651  $  8,289,609
  Interest and dividend income                           5,032,735     4,630,658
                                                      ------------  ------------
    Total investment income                             19,889,386    12,920,267

Participant pre-tax contributions                       21,563,340    16,431,536
Employer discretionary retirement contributions            110,443        45,281
Employer matching contributions                             37,688             -
Rollovers from other qualified plans                       728,825       427,515
                                                      ------------  ------------
    Total additions to net assets                       42,329,682    29,824,599
                                                      ------------  ------------


DEDUCTIONS FROM NET ASSETS:
Benefits paid to participants                            6,643,153     3,484,833
Transfers to other qualified plans - net                   659,096       545,079
                                                      ------------  ------------
    Total deductions from net assets                     7,302,249     4,029,912
                                                      ------------  ------------
      Net increase                                      35,027,433    25,794,687


NET ASSETS AVAILABLE FOR BENEFITS:
  BEGINNING OF YEAR                                     91,233,703    65,439,016
                                                      ------------  ------------
  END OF YEAR                                         $126,261,136  $ 91,233,703
                                                      ============  ============


See notes to financial statements.
--------------------------------------------------------------------------------


                                     - 3 -


<PAGE>


NAVISTAR INTERNATIONAL TRANSPORTATION CORP.
401(k) PLAN FOR REPRESENTED EMPLOYEES
-------------------------------------------


NOTES TO FINANCIAL STATEMENTS FOR THE YEARS
ENDED DECEMBER 31, 1998 AND 1997
-------------------------------------------

 1.      DESCRIPTION OF THE PLAN

         The following description of the Navistar International  Transportation
         Corp. 401(k) Plan for Represented  Employees (the "Plan") provides only
         general information. Participants should refer to the Plan document for
         a complete description of the Plan's provisions.

         General   -  The   Plan  is   sponsored   by   Navistar   International
         Transportation  Corp. (the "Company") to provide savings and retirement
         benefits for certain eligible represented  employees of the Company and
         of certain of its affiliates  participating under the Plan. The Plan is
         offered to eligible  Company  employees who are  represented by a labor
         organization  under a  collective  bargaining  agreement  who  have met
         certain  seniority  or  service  requirements  under the terms of their
         respective bargaining  agreements.  The Plan was established October 1,
         1991. The Plan is subject to the provisions of the Employee  Retirement
         Income Security Act of 1974 ("ERISA").

         The Trustee,  American  Express Trust, is authorized to hold and invest
         the assets of the Plan in accordance  with the  provisions of the Trust
         Agreement between the Company and the Trustee.  Administrative expenses
         are paid by the Company.

         Contributions - Contributions may be made to the Plan only on a pre-tax
         basis.  Pre-tax salary reduction  contributions to the Plan are subject
         to  annual  maximum  limits  equal to the  lesser  of 18  percent  of a
         participant's  annual  compensation  or  a  prescribed  dollar  amount,
         indexed for inflation ($10,000 for 1998  and $9,500 for 1997).  Subject
         to Company  approval,  certain  eligible  employees are allowed to make
         rollover  contributions  to the  Plan,  if such  contributions  satisfy
         applicable   regulations.   Such  employees  are  not  required  to  be
         participants  for  any  other  purpose  than  their  rollover  account;
         however,  no pre-tax salary reduction  contributions  may be made until
         such time as such employee would otherwise  become eligible to and does
         elect   participation  in  the  Plan.   Participant   salary  reduction
         contributions and rollover contributions are fully vested immediately.

         For the  1998  and  1997  Plan  years,  certain  collective  bargaining
         agreements  provide  for  an  Employer  Retirement  Contribution.  This
         contribution  is  employer-provided  and is  allocated  among  eligible
         members of the applicable  bargaining  unit based on the  participant's
         age at year-end and eligible compensation as follows:

                       Age                                Percent Contributed
                       ---                                -------------------
                   Under 30                                       1.75
                   30 through 39                                  2.75
                   40 through 49                                  3.75
                   50 and over                                    4.75


                                     - 4 -


<PAGE>


 1.      DESCRIPTION OF THE PLAN (continued)

         The amount credited to an eligible  participant's account is subject to
         a  five-year  cliff  vesting  schedule.  Non-vested  contributions  are
         forfeited  when a  participant  retires  or  terminates  service.  Such
         forfeitures will be used to offset future Company contributions.

         Investment  Options -  Participants  may direct the investment of their
         account assets as follows:

             o    American  Express  Trust  Collective   Income  Fund  II  is  a
                  collective  investment  fund which  invested in a  diversified
                  pool of investment  contracts  varying in maturity date,  size
                  and yield, and short-term cash instruments.

             o    American  Express  Trust  Equity  Index Fund is  a  collective
                  investment fund which invested  primarily in nearly all of the
                  same stocks as are in the Standard & Poor's 500 stock index.

             o    IDS  Selective  Fund  (Y) is  a  mutual  fund  which  invested
                  primarily in  investment  grade  corporate  bonds,  government
                  bonds, and other debt securities.

             o    IDS New  Dimensions  Fund (Y) is a  mutual fund which invested
                  primarily  in common   stocks  of  United   States  companies.

             o    Templeton  Foreign  Fund  is  a  mutual  fund  which  invested
                  primarily in common  stocks and other  securities of companies
                  and governments outside the United States.

             o    Navistar  International  Corporation  Common Stock Pooled Fund
                  is  a  pool  consisting  primarily  of Navistar  International
                  Corporation  Common Stock  and  a small  amount of  short-term
                  cash    investments.    Navistar   International   Corporation
                  ("Navistar") is the parent of the Company.

                  The shares of Navistar International Corporation and the units
                  of a money  market  fund  are  pooled  in a master  trust  and
                  represented  by units of the Navistar Stock Pool (the "Pool").
                  The value of each unit of the Pool is  represented in terms of
                  "net  asset  value"  ("NAV").  The NAV per unit of the Pool is
                  determined  by dividing the value of all assets of the Pool by
                  the total number of outstanding units of the Pool.

                  The plans participating in the Master Trust Fund are allocated
                  units of the Pool based on their  respective  percent interest
                  and  share  in the  assets  of  the  Pool,  investment  income
                  generated by assets of the Pool, and the  gains/losses  of the
                  assets of the Pool by way of the  increase/decrease of the NAV
                  of each  participating  plan's  allocated  units of the  Pool.
                  Except  for the fact that each  participating  plan may hold a
                  different number of units of the Pool, each participating plan
                  shares equally in the assets and investment  experience of the
                  Pool since the same NAV applies to all units of the Pool.

                  The  participating  plans in the Master Trust Fund  and  their
                  percent interest as of December 31, 1998 are as follows:


                       Navistar International Transportation Corp.
                       401(k) Retirement Savings Plan                 70.2%

                       Navistar International Transportation Corp.
                       401(k) Plan for Represented Employees          25.9%

                       Navistar Retirement Accumulation Plan           3.9%


                                     - 5 -


<PAGE>


1.       DESCRIPTION OF THE PLAN (continued)

         The following  table  presents the carrying value of investments of the
         Master Trust Fund as of December  31, 1998 and 1997 and the  components
         of investment income for the two years then ended.

                                                         1998            1997
                                                         ----            ----

           Cash and cash equivalents                 $   176,042     $   148,796
           Navistar International Corporation
             Common Stock                             11,177,596       5,338,075
                                                     -----------     -----------
           Total investments                         $11,353,638     $ 5,486,871
                                                     ===========     ===========

           Net realized/unrealized appreciation
             in fair value of investments            $ 1,298,552     $ 2,176,820
           Interest and dividend income                   14,174           5,081
                                                     -----------     -----------
           Total investment income                   $ 1,312,726     $ 2,181,901
                                                     ===========     ===========

         Participant Accounts - Contributions and assets allocated to a specific
         investment fund are commingled with those of other participants and are
         invested in accordance  with the nature of the specific fund.  Realized
         and unrealized  appreciation and  depreciation,  dividends and interest
         are allocated to participants based on their proportionate share of the
         funds.  Fund managers' fees are charged to participants'  accounts as a
         reduction of the return earned on each investment option.

         Loans to  Participants  -  Participants  may  borrow  from  their  fund
         accounts  a minimum  of $1,000 up to the  lesser of 50% of their  total
         account balance or $50,000. Loan transactions are treated as a transfer
         between the applicable  investment  funds and the loan fund. Loan terms
         range  from 1 to 5 years,  with  the  exception  of loans  made for the
         purchase of a principal residence, which must be repaid in installments
         over a period of up to 10 years.  The loans are  secured by the balance
         in the  participant's  account and bear interest at a rate commensurate
         with local prevailing rates as determined by the Plan Administrator.

         Payment of Benefits - Participants  may request either an in-service or
         hardship  withdrawal of certain of their account  assets.  Participants
         may only withdraw  authorized  pre-tax salary  reduction  contributions
         after  attaining age 59-1/2,  or on a hardship basis prior to attaining
         age  59-1/2.  The  Employer  Retirement   Contribution  and  investment
         earnings thereon are not eligible for in-service withdrawal.

         A  participant's   vested  account  is  distributable  at  the  time  a
         participant  separates  from service with the Company,  suffers a total
         and permanent  disability,  or dies.  When the  participant  terminates
         employment,  the  account  will be  distributed  if the asset  value is
         $5,000 or less. If the asset value is more than $5,000, the participant
         has the option of receiving  the account upon  separation  or deferring
         receipt  until no later  than age 65.  Accounts  are  distributed  in a
         single  sum.  If the  account  includes  100 or more shares of Navistar
         Common Stock,  the  distribution of that portion of the account will be
         made in the form of full shares of Common  Stock and a cash payment for
         any  fractional  shares.  For  accounts  with less  than 100  shares of
         Navistar Common Stock, the distribution will be made in cash.


                                     - 6 -


<PAGE>


2.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

        Basis  of  Presentation  - The  financial  statements  of  the Plan  are
        presented on the accrual basis of accounting.


        Use  of  Estimates  -  The   preparation  of  financial  statements   in
        conformity  with  generally  accepted   accounting  principles  requires
        management  to  make estimates and assumptions  that affect the reported
        amounts of  assets and  liabilities and disclosure of contingent  assets
        and  liabilities  at  the  date  of the  financial  statements  and  the
        reported amounts of revenues and expenses during  the  reporting period.
        Actual results could differ from those estimates.


        Investment  Valuation &  Income  Recognition  -  Participant  loans  are
        valued at cost  which  approximates  market value. All other investments
        are presented  at  published  market values.  Security  transactions are
        accounted  for on  the trade  date.  Dividend  income  is accrued on the
        ex-dividend date.

        Unrealized  appreciation  or depreciation on investments  is  determined
        by  comparing  the fair  value  of  the  separate  funds at the  current
        year-end,  net   of  contributions  made   during  the  year,  to  their
        respective  fair values at  the  preceding  year-end.  Realized gains or
        losses are  determined  by  comparing  net  sales  proceeds to  the fair
        value of the investment at the preceding year-end.

        Participant Withdrawals - As of  December 31, 1998 and 1997, there  were
        no benefits which  were due  to former  participants  who have withdrawn
        from participation in the Plan. Benefits are recorded when paid.

3.      TAX STATUS OF THE PLAN

        The  Internal  Revenue  Service  has  issued a  favorable  determination
        letter,  dated April 1996,  that  the Plan, as then designed,  qualified
        under Sections  401(a)  and 401(k) of the Internal  Revenue Code of 1986
        (the "Code").  The  Company believes that the Plan is currently designed
        and being operated  in compliance  with the applicable  requirements  of
        the Code and,  thus, the  Plan and related trust are exempt from federal
        income  taxes  under  Section  501(a)  of  the Code as of the  financial
        statement date. Therefore, no provision  for income taxes is included in
        the Plan's financial statements.

4.      AMENDMENT OR TERMINATION OF THE PLAN

        Although  the Company  expects to  continue the Plan  indefinitely,  the
        Company,  at  its  discretion,  reserves  the  right to  amend,  modify,
        suspend,  or  terminate  the Plan,  provided  that  no such action shall
        deprive any person of any rights to contributions  made  under the Plan.
        If the Plan is  terminated,  the  interest of each   participant  in the
        funds will be distributed to such participant or  his or her beneficiary
        at the time  prescribed  by the Plan  terms  and  ERISA.  If the Plan is
        terminated,  Plan  participants  will become  fully  vested in any funds
        allocated to them.

5.      INVESTMENTS EXCEEDING 5 PERCENT OF NET ASSETS AVAILABLE FOR BENEFITS

        The Plan's investments which exceeded 5 percent of net assets  available
        for benefits as of December 31, 1998 and 1997 are as follows:

                                                         1998          1997
                                                         ----          ----

        American Express Trust
          Collective Income Fund II                  $17,401,048   $13,897,125
        American Express Trust Equity Index Fund      23,997,051    15,040,117
        IDS Selective Fund (Y)                        12,701,428     9,585,028
        IDS New Dimensions Fund (Y)                   59,116,639    42,375,128
        Templeton Foreign Fund                             *         5,948,980

        *This  investment did  not exceed 5  percent of the net assets available
         for benefits as of December 31, 1998.


                                     - 7 -


<PAGE>


6.      BY FUND INFORMATION

        Investment  income,   participant  contributions,   employer  retirement
        contributions,  benefits  paid  to  participants  and transfers to other
        qualified  plans, by  separate  investment  fund, are as follows for the
        years ended December 31, 1998 and 1997:

                                                        1998            1997
                                                        ----            ----
        Net realized/unrealized appreciation
         (depreciation) in fair value of investments:
            Navistar Pooled Stock
              Master Trust Fund                     $   382,834     $    74,030
            American Express Trust
              Collective Income Fund II                 900,248         758,946
            American Express Trust
              Equity Index Fund                       4,977,324       3,055,635
            IDS Selective Fund (Y)                      100,891          75,714
            IDS New Dimensions Fund (Y)               9,374,824       4,671,179
            Templeton Foreign Fund                     (879,470)       (345,895)
                                                    -----------     -----------
        Total                                       $14,856,651     $ 8,289,609
                                                    ===========     ===========

        Interest and dividend income:
            Navistar Pooled Stock
              Master Trust Fund                     $     6,518     $     1,246
            American Express Trust
              Collective Income Fund II                  42,481          40,309
            American Express Trust
              Equity Index Fund                          56,309          27,855
            IDS Selective Fund (Y)                      780,827         663,165
            IDS New Dimensions Fund (Y)               3,546,783       3,237,896
            Templeton Foreign Fund                      599,817         660,187
                                                    -----------     -----------
        Total                                       $ 5,032,735     $ 4,630,658
                                                    ===========     ===========

        Participant pre-tax contributions:
            Navistar Pooled Stock
              Master Trust Fund                     $   481,640     $    76,197
            American Express Trust
              Collective Income Fund II               2,886,836       2,566,017
            American Express Trust
              Equity Index Fund                       4,815,006       2,957,583
            IDS Selective Fund (Y)                    2,178,586       1,835,475
            IDS New Dimensions Fund (Y)               9,324,634       7,192,882
            Templeton Foreign Fund                    1,876,638       1,803,382
                                                    -----------     -----------
        Total                                       $21,563,340     $16,431,536
                                                    ===========     ===========


                                     - 8 -


<PAGE>


 6.     BY FUND INFORMATION (continued)

                                                        1998            1997
                                                        ----            ----
           Employer discretionary retirement
             contributions:
             Navistar Pooled Stock
               Master Trust Fund                    $    11,074     $     2,457
             American Express Trust
               Collective Income Fund II                 65,099          31,897
             American Express Trust
               Equity Index Fund                          8,270           2,415
             IDS Selective Fund (Y)                       5,089           1,601
             IDS New Dimensions Fund (Y)                 14,833           4,592
             Templeton Foreign Fund                       6,078           2,319
                                                    -----------     -----------
           Total                                    $   110,443     $    45,281
                                                    ===========     ===========

           Employer matching contributions:
             Navistar Pooled Stock
               Master Trust Fund                    $     6,625     $         -
             American Express Trust
               Collective Income Fund II                  7,210               -
             American Express Trust
               Equity Index Fund                          6,161               -
             IDS Selective Fund (Y)                       3,291               -
             IDS New Dimensions Fund (Y)                 11,633               -
             Tempelton Foreign fund                       2,768               -
                                                    -----------     -----------
           Total                                    $    37,688     $         -
                                                    ===========     ===========

           Benefits paid to participants:
             Navistar Pooled Stock
               Master Trust Fund                    $     7,400     $         -
             American Express Trust
               Collective Income Fund II              1,686,781         905,365
             American Express Trust
               Equity Index Fund                      1,084,921         464,468
             IDS Selective Fund (Y)                     639,581         476,847
             IDS New Dimensions Fund (Y)              2,848,697       1,349,941
             Templeton Foreign Fund                     249,536         195,847
             Participant loans                          126,237          92,365
                                                    -----------     -----------
           Total                                    $ 6,643,153     $ 3,484,833
                                                    ===========     ===========


           Transfers to other qualified
             plans - net:
             Navistar Pooled Stock
               Master Trust Fund                    $     2,519     $         -
             American Express Trust
               Collective Income Fund II                 70,812          59,526
             American Express Trust
               Equity Index Fund                        128,490          66,938
             IDS Selective Fund (Y)                      42,675          72,832
             IDS New Dimensions Fund (Y)                274,238         255,715
             Templeton Foreign Fund                      96,739          63,788
             Participant loans                           43,623          26,280
                                                    -----------     -----------
           Total                                    $   659,096     $   545,079
                                                    ===========     ===========


                                     - 9 -


<PAGE>
<TABLE>
<CAPTION>
NAVISTAR INTERNATIONAL TRANSPORTATION CORP.
401(k) PLAN FOR REPRESENTED EMPLOYEES
-------------------------------------------

SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES - ITEM 27(a), DECEMBER 31, 1998
-----------------------------------------------------------------------------------------------------------------------------------


                                                        DESCRIPTION OF INVESTMENT,
                                                        INCLUDING MATURITY DATE,
          IDENTITY OF ISSUE, BORROWER,                  RATE OF INTEREST, COLLATERAL,
(1)       LESSOR OR SIMILAR PARTY                       PAR OR MATURITY VALUE                          COST            MARKET VALUE
          -----------------------------------------     -------------------------------------          ----            ------------
<S>       <S>                                           <S>                                       <C>                  <C>

 *        Navistar Pooled Stock Master Trust Fund       391,992  units of participation          $  2,574,365         $   2,939,938

          American Express Trust Collective Income      943,476  shares of beneficial
             Fund II                                    interest, collective investment fund       15,539,300            17,401,048


          American Express Trust Equity Index Fund      685,317 shares of beneficial
                                                        interest, collective investment fund       15,597,416            23,997,051


          IDS Selective Fund (Y)                        1,369,574 shares of beneficial
                                                        interest, mutual fund                      12,611,700            12,701,428


          IDS New Dimensions Fund (Y)                   2,049,459 shares of beneficial
                                                        interest, mutual fund                      41,752,569            59,116,639


          Templeton Foreign Fund                        646,434  shares of beneficial
                                                        interest, mutual fund                       6,313,069             5,423,581


          Participant Loans                             Interest rates ranging
                                                          from 6.67% - 9.73%
                                                          (maturing 1999 through 2008)              3,864,609            3,864,609
                                                                                                 ------------         ------------
          TOTAL INVESTMENTS                                                                      $ 98,253,028         $125,444,294
                                                                                                 ============         ============
<FN>
(1)  An asterisk indicates a party-in-interest
</FN>
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                     - 10 -


<PAGE>
<TABLE>
<CAPTION>
NAVISTAR INTERNATIONAL TRANSPORTATION CORP.
401(k) PLAN FOR REPRESENTED EMPLOYEES
-------------------------------------------

SCHEDULE OF REPORTABLE TRANSACTIONS - ITEM 27(d)
YEAR ENDED DECEMBER 31, 1998
-----------------------------------------------------------------------------------------------------------------------------------


Single Transactions  Exceeding 5% of Value - No transactions  qualified for this
section.

Series of Transactions with Same Broker Exceeding 5% of Value:

                                                                 Number      Number
                                              Description          of          of                                       Net Gain
        Identity of Issue                       of Asset        Purchases     Sales     Purchases         Sales          (Loss)
---------------------------------------       -------------     ---------     -----     ----------        -----         --------
<S>                                           <S>                  <C>          <C>     <C>             <C>              <C>
Navistar Pooled Stock Master Trust Fund       Company Stock        135                  $3,480,972
Navistar Pooled Stock Master Trust Fund       Company Stock                     67                      $1,679,931       $50,757

<FN>
Note: The above list of reportable  transactions,  provided  by American  Express  Trust,  was determined by comparing  the  current
      value of the  transactions,  or series of  transactions,  on the transaction  date(s),  with 5 percent of the current value of
      the Trust assets at the beginning of the Plan year; and, as such, may  include transactions  which represent 5 percent of  the
      assets of the Trust, but may not represent  transactions which represent 5 percent of Plan assets.
</FN>
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                     - 11 -


<PAGE>
<TABLE>
<CAPTION>
NAVISTAR INTERNATIONAL TRANSPORTATION CORP.
401(k) PLAN FOR REPRESENTED EMPLOYEES
-------------------------------------------

SCHEDULE OF REPORTABLE TRANSACTIONS - ITEM 27(d)
YEAR ENDED DECEMBER 31, 1998 (continued)
------------------------------------------------------------------------------------------------------------------------------------


Series of Transactions in Same Security Exceeding 5% of Value:

                                                                         Number        Number
                                    Description                           of            of                            Net Gain
    Identity of Issue                 of Asset           Purchases       Sales       Purchases         Sales           (Loss)
--------------------------          -------------        ---------       -----      -----------        -----         ----------
<S>                                 <S>                     <C>           <C>       <C>              <C>             <C>
IDS New Dimensions Fund (Y)         Mutual Fund             107                     $14,253,009
IDS New Dimensions Fund (Y)         Mutual Fund                           149                        $6,883,388      $2,246,663

IDS Selective Fund (Y)              Mutual Fund             246                       4,589,914
IDS Selective Fund (Y)              Mutual Fund                           108                         1,574,412          10,673

Templeton Foreign Fund              Mutual Fund              57                       2,663,392
Templeton Foreign Fund              Mutual Fund                           155                         2,309,316         (85,377)

American Express Trust              Collective
  Collective Income Fund II           Investment Fund       118                       6,215,022
American Express Trust              Collective
  Collective Income Fund II           Investment Fund                     112                        3,614,665          451,350

American Express Trust              Collective
  Equity Index Fund                   Investment Fund       123                       7,118,761
American Express Trust              Collective
  Equity Index Fund                   Investment Fund                     106                        3,139,153        1,221,928

Navistar Pooled Stock
  Master Trust Fund                Company Stock            135                       3,480,972
Navistar Pooled Stock
  Master Trust Fund                Company Stock                          67                         1,679,931           50,757

<FN>
Note: The above list of reportable  transactions,  provided  by American  Express Trust,  was  determined  by comparing  the current
      value of the transactions, or series of  transactions,  on  the  transaction  date(s),  with 5 percent of the current value of
      the Trust assets at the beginning of the Plan year; and, as such, may  include  transactions which  represent 5 percent of the
      assets of the Trust, but may not represent  transactions which represent 5 percent of Plan assets.
</FN>
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>


                                     - 12 -