8-K

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



                                                      FORM 8-K
                                                   CURRENT REPORT


Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):   July 15, 2002




                        N A V I S T A R    I N T E R N A T I O N A L    C O R P O R A T I O N
                        ---------------------------------------------------------------------
                               (Exact name of registrant as specified in its charter)




               Delaware                                  1-9618                               36-3359573
   ------------------------------------          -------------------------           --------------------------
     (State or other jurisdiction of               (Commission File No.)                  (I.R.S. Employer
     incorporation or organization)                                                      Identification No.)





   4201 Winfield Road, P.O. Box 1488, Warrenville, Illinois                                       60555
   --------------------------------------------------------                           -------------------------
         (Address of principal executive offices)                                              (Zip Code)





                          Registrant's telephone number, including area code (630) 753-5000






PAGE 2


ITEM 5.    OTHER EVENTS

           On  July  15,  2002,  the  Registrant  issued  the  press  release,  which is  attached  as  Exhibit  99.1 to this Report
           and incorporated by reference herein.


ITEM 7.    FINANCIAL STATEMENTS AND EXHIBITS

                  (c)      Exhibits

                           Exhibit No.        Description                                              Page
                           -----------        -----------                                              ----

                              99.1              Press Release dated                                      E-1
                                                July 15, 2002






                                                              SIGNATURES
                                                              ----------


Pursuant to the  requirements  of the  Securities  Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.


NAVISTAR INTERNATIONAL CORPORATION
- ----------------------------------
          Registrant


Date:    July 15, 2002                      /s/  Mark T. Schwetschenau
                                            ----------------------------------------
                                                 Mark T. Schwetschenau
                                                 Vice President and Controller
                                                 (Principal Accounting Officer)






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                                                           INDEX TO EXHIBITS



                            Exhibit No.        Description                                              Page
                            -----------        -----------                                              ----

                              99.1             Press Release dated                                      E-1
                                               July 15, 2002

EX-99.1

                                                                                                       EXHIBIT 99.1


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


                                 NAVISTAR SAYS CAW MEMBERS APPROVE NEW LABOR PACT
                                    FOR CHATHAM-KENT HEAVY TRUCK ASSEMBLY PLANT

              New Contract Boosts Productivity, Provides 48-Hour Week Including Scheduled Overtime;
                      Lost Production, Engine Shortage Will  Contribute to Anticipated 3rd Quarter Loss

         WARRENVILLE, Ill. -- (July 15, 2002) -- International Truck and Engine Corporation announced today that
members of Local 127 of the Canadian Auto Workers (CAW) have ratified a new two-year labor contract and that full
production at the company's Chatham-Kent heavy truck assembly plant will resume on July 22.

         The new contract covers approximately 1,720 CAW-represented production and maintenance employees,
including approximately 645 active workers and 1,080 employees on layoff who are not likely to be recalled in the
near term. International Truck and Engine is the operating company of Navistar International Corporation
(NYSE:NAV).

         Negotiations towards a new labor agreement began on April 26 and the CAW initiated a strike action when
the old contract expired at 12:01 a.m. on June 1. Most recent negotiations began on July 13 and continued into
the morning of July 14 when tentative agreement on a new contract was reached.

         This new contract positions the company to be market responsive over the business cycle with a more
variable cost structure. While the new contract does not achieve all necessary cost savings sought by the company
to make the assembly plant fully competitive, it increases productivity and provides for flexible work schedules.
Under the contract, work weeks can be scheduled for up to 48 hours over six days, including scheduled overtime.

         Prior to the strike, production at Chatham had been averaging 39 trucks per day on one shift. The same
number of employees will produce 46 trucks per day when they return to work. Under the new contract, the plant
will be able to produce up to 57 trucks per day including overtime.



                                                        E-1



                                                                                              EXHIBIT 99.1 CONTINUED

Page Two/New Contract


         The contract has a cost structure approximately equivalent to the previous contract.  The basic hourly
wage rates and vacation time remain unchanged. There is a one-time increase in pension benefits that will be
offset by the overtime productivity gains included in the contract. A portion of the increase in build rate from
39 trucks per day to 46 trucks per day will be a net gain.

         On April 5, a "consideration to close" letter was issued to the CAW. That letter, required under the
contract that expired June 1, said that cost reductions totaling $28 million were needed to make the plant
competitive and that the company had been able to identify $14 million. Although the goal of a $28 million cost
decrease has not been achieved, the company and the CAW have committed to work together to identify the
additional $14 million in cost savings that is required in addition to those actions that management has
identified and is implementing.

         "This new contract gives greater productivity and allows the company the opportunity to benefit from the
increased demand developing in the heavy sector of the market," said Steve Keate, president of the International
truck group. "We have the flexibility to make the right business decisions for the heavy business as it relates
to Chatham. If we can't get there, we have the flexibility to close the plant after June 1, 2003."

         Concurrent with the June 1 strike, production of heavy trucks was shifted to the company's plant in
Escobedo, Mexico where production was in the process of being ramped up to 58 trucks per day on two shifts and
will maintain a schedule at approximately 300 trucks per week for the next several months to continue to fulfill
customer commitments.

         Keate also said that this manufacturing plan will allow International to build trucks in line with
materials allocated from suppliers. To date, Caterpillar, one of International's two engine suppliers, has
identified a shortfall of 1,200 October 2002 pre-emissions engines for fiscal 2002. Consequently, Keate said,
heavy truck production will be approximately 1,000 trucks lower in the third quarter ending July 31 and 200
trucks lower in the fourth quarter ending October 31 than previously estimated. As the loss of heavy units, a
previously announced product recall, the Brazilian exchange rate and the cost of the CAW strike, the company
expects a loss for the third quarter ending July 31 of ($0.25) to ($0.30) per share.

         In addition to heavy trucks, International Truck and Engine is a leading producer of mid-range diesel
engines, medium trucks, severe service vehicles, and a provider of parts and service sold under the
International® brand. IC Corporation, a wholly owned subsidiary, produces school buses.  The company also is a
private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets.

                                                            E-2