Exhibit 99.1

Media contact:                      Roy Wiley, 630-753-2627
Investor contact:                   Ramona Long, 630-753-2406
Web site:                           www.nav-international.com

                             BOARD OF DIRECTORS OF NAVISTAR INTERNATIONAL CORPORATION
                                      VOTES TO REDEEM SHAREHOLDER RIGHTS PLAN

         WARRENVILLE, Ill. - October 16, 2001 - Navistar International Corporation (NYSE: NAV) producer of
International(R)brand commercial trucks, school buses and diesel engines announced today that its board of
directors has authorized the redemption of the rights issued pursuant to the rights plan adopted on April 20,1999.
         When the rights plan was adopted, the board said it would review the plan periodically and repeated that
promise after shareowners at the company's annual meeting in February voted in favor of a non-binding resolution
requesting the removal of the rights plan.
         The rights will be redeemed at a price of $.01 per right, payable in cash. There is currently one right
attached to each outstanding share of common stock. Shareowners do not have to take any action to receive the
redemption payment and do not have to exchange stock certificates. The redemption payment will be mailed on
November 15, 2001 to shareowners of record on October 26, 2001. As a result of the redemption, the rights plan
will be terminated.
         John R. Horne, Navistar chairman, president and chief executive officer, said "given current conditions
in the economy and our industry, continued dialogue with our shareowners about the merits of rights plans is
neither productive or relevant to the current challenges confronting our company and accordingly, our board of
directors determined it prudent to eliminate further such distractions."
         Navistar International Corporation (NYSE: NAV) is the parent company of International Truck and Engine
Corporation, a leading producer of mid-range diesel engines, medium trucks, school buses, heavy trucks, severe
service vehicles, and parts and service sold under the International(R)brand.  The company also is a private label
designer and manufacturer of diesel engines for the pickup truck, van and SUV markets.  With world headquarters
in Warrenville, a suburb of Chicago, Navistar had 2000 sales and revenues of  $8.5 billion.  Additional
information can be found on the company's web site at www.internationaldelivers.com

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