**March          2006**

**NYSE:           NAV**

**Navistar          InternationalCorporation**

**Investor          Presentation**

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**Forward          Looking Information**

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**Parts          Group**

**Parts          revenue and earnings provide stability and growth in cyclical truck          Industry**

**Largest          OEM product offering through most extensive distribution channel**

**2004          revenue of $1.2 billion**

**2004          3 year CAGR of 11.9%**

**Corporate          Overview**

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**Executing          our Corporate Strategy**

**$6,000/unit          incremental cost reduction in Truck and$600/unit in Engine by          2009**

**Manufacturing          operations**

**Continue          to          improve below the line expense**

**Global          Sourcing**

**Control          our          destiny**

**CompetitiveCost          Structure**

**Great          Products**

**Build          brand          through excitement and value**

**Commitment          to Class 8**

**Extend          Medium product line**

**2007/2010          emission engines…challenges andopportunities**

**Culture          of          Quality**

**Quick          to          market with derivative products**

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**Executing          our Corporate Strategy**

**Distribution          strategy/organic growth**

**Parts–          continue accelerated growth**

**New          Markets**

**Scale          to          leverage investment**

**>$15          Billion in revenue with growth in all segmentsby 2009**

**>10%          Segment Margins in all businesses by 2009**

**$1          billion          net income by 2009**

**Utilize          existing resources to achieve objectives**

**Deliver          today while investing for the future**

**Deliver          On OurCommitments**

**Growth**

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**North          American market share leader inClass 6-8 trucks and school          bus**

**Manufacturing          locations in U.S.,Canada and Mexico**

**Trucks          sold          under the International**
**®**

**brand**

**Buses          sold          under the IC**
**®**

**          brand**

**Truck          Group**

**Navistar          -          Truck Group**

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**Construction,          waste management &other on-off highway applicationsfleets and owner          operators**

**Severe          Service – 23.8%**

**2005          Combined Market Share – 27%**

**School          Bus**

**Class          6-7**

**Combined          Class 8 – 18.8%**

**Class          8**

**North          American Market Share Leaderin Class 6-8 Trucks and School          Bus**

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**Truck          GroupWho We Are and What We Do**

**Our          core          business**

**Now,          we          also have…**

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**7700          Series**

**XT          Series**

**Aware**
**TM**

**4100          Series**

**3200          IM          Bus**

**CF          Series**

**Delivering…Great          New Products**

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**Tires**

***Korea***

**Stampings**

***India***

**Castings**

***India***

**12%**

**Grosssavings**

**25%**

**Grosssavings**

**Examples**

**23%**

**Grosssavings**

**Delivering…World-Class          Competitive Costs**

**Global          Sourcing**

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**Manufacturing          Labor Improvements**

**Year-Over-Year          Improvements in Average Annual Cost Per Unit**

**25.6%**

**10.4%**

**20.0%**

**Delivering…World-Class          Competitive Costs**

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**Delivering          New Markets…Mahindra International**

**Mahindra          Joint Venture Strategy**

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**MXT**

**Delivering          New Markets…Military Business**

**14          contracts won to date**

**International          Advantage**

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**Delivering          New Markets…Workhorse Custom Chassis**

**Workhorse          Acquisition**

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**Combined          Class 8**

**Class          6-8**

**Retail          Class          6-8 Industry Landscape**

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**Great          Products**

**CompetitiveCost          Structure**

**Growth**

**What          it          Means for Truck Group in **
**2007 and          beyond**

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**World’s          largest engine manufacture ofmid-range diesel engines          (165-325HP)**

**Integrated          product offerings drivemedium and bus market          leadership**

**Long-term          contract with Ford through2012**

**Manufacturing          locations in U.S. andBrazil**

**Engine          Group**

**Navistar–          Diesel Engine Group**

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**Grow          Revenues to $4+ Billion**

**10%          ROS**

**Engine          Group          Strategy**

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**6.0L          Power Stroke**

**Approximately          50%market share inheavy duty dieselpickup/vans**

**340,000          units**

**DT          466E (I6)**

**49%          marketshare leader inClass 6-7 Truckand School          Bus**

**70,000          units**

**V6**

**For          LCF **

**Class          4-5**

**10,000          units**

**I4          / I6**

**50,000          units – IESA**

**90,000          units - MWM**

**South          America**

**Complete          line of3 - 7L products**

**Great          Products**

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**6.0L          Power          Stroke Diesel**

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**Medium          Duty Truck/School Bus Engine Market Share**

**International          I6 Engine(North America)**

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**South          American Operations**

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**International          Big Bore Engine**

**Leverage          scale in developmentand procurement**

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**U.S.          EPA On-Highway Emissions**

**NoX          (gm/k W-hr)**

**.01**

**.10**

**.02          **

**EPA2010            **

**2.4**

**4.0**

**1.1**

**EPA          2007**

**EPA          2004**

**EPA          2000**

**EURO          + Off-Highway Emissions**

**NoX          (gm/k W-hr)**

**.01**

**.10**

**.02**

**2.4**

**4.0**

**1.1**

**.15**

**5.0**

**EUROV          2009**

**EUROIV          2006**

**EURO          III2002**

**EURO          II**

**Off          road2010**

**‘07          vs ‘0490% PM50% NoX**

**Emissions          Impacts**

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**Engine          Group          Sales Revenue by Source**

**0%**

**10%**

**20%**

**30%**

**40%**

**50%**

**60%**

**70%**

**80%**

**90%**

**100%**

**2003**

**2005          Estimate**

**2008**

**2010**

**Ford**

**International**

**Other          - N.A.**

**South          America**

**Increased          Customer Diversification**

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**Growth          Provides Profit and Scale**

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**World          Mid-range Diesel Leader**

**0**

**100**

**200**

**300**

**400**

**500**

**2004          Volume in thousands (000’s)**

**600**

**Worldwide          Mid-Range Diesel (2.8-10.0L, 160-350hp)**

**436**

**328**

**228**

**191**

**111**

**80**

**75**

**64**

**60**

**47**

**35**

**23**

**20**

**18**

**13**

**80**

**SCANIA**

**RENAULT**

**DEUTZ**

**MAN**

**VOLVO**

**MITSUBISHI**

**IVECO**

**BMW**

**DEERE**

**TOYOTA**

**CAT**

**DAIMLER          CHRYSLER**

**GM/ISUZU**

**CUMMINS**

**INTERNATIONAL**

**516**

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**Great          Products**

**CompetitiveCost          Structure**

**Growth**

**Engine          Group: A Winning Business**

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**Support          the Navistar strategy byproviding funding and liquidity toInternational,          its Dealers, andCustomers**

**Wholesale          and Retail financing**

**Balance          growth with prudent creditand appropriate leverage**

**Focus          on International’s truck dealerand customer needs**

**Finance          Corporation**

**Navistar–          Finance Corporation**

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**Finance          Corporation  Who We Are and What We Do**

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**Great          Products**

**CompetitiveCost          Structure**

**Growth**

**Finance          Corporation**

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**Parts          revenue          and earnings provide stability and growth in cyclical truck          industry**

**Largest          OEM          product offering through extensive distribution channel**

**2004          Revenue          of $1.2 billion**

**2004-3          year          revenue CAGR of 11.9%**

**Parts          Group**

**Navistar–          Parts Group**

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**Parts          GroupWho we are and what we do**

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**Parts          Group          Cost Advantage**

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**Parts          Delivers Non-Cyclical Results**

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**Additional          Growth Opportunities**

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**Great          Products**

**CompetitiveCost          Structure**

**Growth**

**Parts          Group**

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**Utilize          What          We Have**

**Leverage          What OthersHave Built**

**How          are we          going to achieve ourgoals…Maximize resource          utilization**

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**Overall          Objective:  Build Company ofGrowth and Significant          Returns**

*AND*

**Do          it sooner          than 2009!**

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**Great          Products**

**Growth**

**CompetitiveCost          Structure**

**Deliver          On OurCommitments**

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