Bank of America

2008 Credit Conference

Orlando, FL

November 20, 2008

Exhibit 99.1

2

Safe Harbor

Statement

Information provided and statements contained in this report that are not purely

historical are forward-looking statements within the meaning of Section 27A of the

Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of

1934, and the Private Securities Litigation Reform Act of 1995. Such forward-looking

statements only speak as of the date of this report and the company assumes no

obligation to update the information included in this report. Such forward-looking

statements include information concerning our possible or assumed future results of

operations, including descriptions of our business strategy. These statements often

include words such as “believe,”

“expect,”

“anticipate,”

“intend,”

“plan,”

“estimate”

or

similar expressions. These statements are not guarantees of performance or results

and they involve risks, uncertainties and assumptions. For a further description of

these factors, see Item 1A. Risk Factors included within our Form 10-Q for the period

ended July 31, 2008 and our Form 10-K for the year ended October 31, 2007, which 

were filed on September 3, 2008 and May 29, 2008, respectively.

Although we

believe that these forward-looking statements are based on reasonable

assumptions, there are many factors that could affect our actual

financial results or

results of operations and could cause actual results to differ materially from those in

the forward-looking statements.

3

Other Cautionary Legends

•

The financial information herein contains both audited and

preliminary/unaudited information and has been prepared by

management in good faith and based on data currently available

to the company.  

•

Certain Non-GAAP measures are used in this presentation to

assist the reader in understanding our core manufacturing

business.

We believe this information is useful and relevant to

assess and measure the performance of our core manufacturing

business as it illustrates manufacturing performance without

regard to selected historical legacy costs (i.e. pension and other

postretirement costs) and other expenses that may not be related

to the core manufacturing business.

Management often uses this

information to assess and measure the performance of our

operating segments.

A reconciliation to the most appropriate

GAAP number is included in the appendix of this presentation.

4

Controlling our Destiny

Leveraging

What We Have and What Others Have Built

Industry Environment Today

5

“Today

I

joined

with

Senate

Republicans

and

leaders

from

the

trucking

industry

to

once

again

emphasize

the

need

for

the

United

States

Senate

to

act

on

bringing

down

the

price

of

gas

at

the

pump,”

Senator

Inhofe

said.

“From

transporting

goods

across

the

country,

to

finding

ways

to

pay

for

our

nation’s

infrastructure,

high

gas

prices

impact

every

aspect

of

our

lives.

Congress

can

improve

both

our

energy

security

and

our

economy

by

increasing

American-based

energy

production.

I

will

continue

to

stand

with

my

Republican

colleagues

to

ensure

the

Senate

stays

focused

on

bringing

down

the

price

of

gas

at

the

pump.”

School Bus –

Goal 60%

MRAP

Mid-Range Engines

Great Products

U.S. and Canada Truck Market Share Position

6

Medium

–

Goal 40%

Severe Service –

Goal 25%

Heavy –

Goal 20%

#1

#1

#4

#1

#1

#1

ProStar™/LoneStar

®

Market Share: 40%

Source:  ACT and internal reports

Mid-Range Engine

Manufacturer

7

Delivers on Its Promise

6.9

mpg

Fleet A

7.0

mpg

Fleet B

7.2

mpg

Fleet C

7.2

mpg

Fleet D

7.7

mpg

Fleet E

At 100,000 to

150,000 miles a

year, the               

saves $2,800-

$7,000 a year in

fuel!

•

Average line

haul costs

$110,000

•

Diesel is

currently

around $3 but

was as high as

$5 a gallon

•

has

7% fuel savings

8

Right Products/Right Time

9

Combined Class 8

Retail Market

Share

Order Receipt

Share

10

MaxxForce

™

DT Series 9/10

MaxxForce™

7

Ford V8

MaxxForce™

5

South American

Engines

MaxxForce

™

Big Bore

11L/13L

6.4L V8

4.5L V6

7.6L/9.3L

Great Products:                         Engine

Complete line of

3L-7L products

I4/I6

Built for power, reliability, durability and fuel economy

11L/13L

Outstanding Power Characteristics

11

Competitor A

Competitor C

Competitor D

Competitor B

Designed for

Payload

Best-in-Class

Fuel Usage @ Idle

0

0.1

0.2

0.3

0.4

0.5

0.6

MaxxForce 13

Competitor A

EGR (Simplicity) vs. SCR (Complexity)

Making Life Easier For Our Customers

12

EGR

SCR

What changes in 2010 for the customer?

•

Fuel economy –

neutrality

•

Lower operating costs vs. SCR

•

No urea required

•

No additional hardware

•

No payload penalty

•

No additional training

•

No urea delivery infrastructure required

•

Fuel economy –

slight benefit in certain

applications

•

Urea required –

offsets fuel economy benefit

•

Higher operating costs than EGR

•

Additional hardware

•

Payload penalty

•

Additional training

•

Urea delivery infrastructure required

SCR on a Typical Vehicle:  Refuse Vocation

Urea Tank and Vertical Exhaust

Note:  Yellow highlight denotes SCR part and component, size,

and location requirements

Refuse

application

–

potential

issues

•

Body may move rearward

•

Wheel base growth

•

Weight distribution

•

Arm interference with exhaust

•

Pivot arm position relative to cab

Routing challenges

•OBD sensors

•Urea heater

•Hoses

Significant WB impacts

•AT module

•Urea tank

•Controls

•Weight distribution

•

-

Adds ~ 400lbs

•Lower payload

•Weight distribution

13

14

Competitive Cost Structure

Key Component of COGS

•

Strategic initiatives

ProStar™

MaxxForce™

Big Bore 11L/13L

•

Scale

•

Strategic partnerships

Mahindra International

South America

CAT

•

Global sourcing

Performance on track/volume/

dollar weakness

•

Overall goal is to continuously

seek the needed quality at the

best price

Greater Flexibility

•

Eliminated guaranteed

employment

•

Productivity

Trades

Stewards/Reps

•

Sourcing non-core jobs

Improved Manufacturing

Cost Structure

•

Wages frozen

•

Healthcare contained

•

New hire package competitive

Wages

Postretirement

Labor Operating Efficiencies

Materials

15

Profitable Growth

Future

Mexico & Export

Increase export

market share

Military

Units delivered:

FY 2005: ~ 1,300

FY 2006: ~ 2,900

FY 2007: ~ 3,200

Commercial Bus

Industry ranges

from 9K –

13K

CF and Conventional Class 4/5

Industry ranges

from 20K –

30K

Industry ranges

from 45K –

60K

Industry ranges

from 35K –

45K

Workhorse Cl 3-7

Launched

Military –

Portfolio of Platforms

16

Military Opportunities

•

2009 military orders are ~ $2 billion, which includes $500 million

of military parts orders

•

Foreign military opportunities identified in over 20 countries

–

Netherlands

–

United Kingdom

–

Romania

–

Saudi Arabia

–

Australia

–

Polish Land Force MTV

•

Navistar Defense –

contract manufacturer (FMTV, MRAP

reset/recap)

•

Contract logistic support/integrated logistic support revenue

streams

17

-

Canada

-

Turkey

-

Mexico

-

Taiwan

-

UAE

18

2013 Projected Global Truck Market

Note: Includes Medium and Heavy Trucks >6T only  Source: JD Power; External Research Analysis

South Africa

China

Russia

Mercosur

Other

LA

Mexico

Middle

East

North

America

Australia

Turkey

India

-

New full line Class 4-8 in

development

-

New plant for trucks and

engines in 2009

-

2011 target volume 40,000

units/year (market 400,000

Class 3-8)

19

Profitable Growth

Continued Focus on Global Growth

•

CAT JV

•

Commercial Bus

•

Russia

•

China

•

Australia

•

Grow existing markets

-

Latin America

-

South Africa

-

Middle East

•

Dedicated dealers in all 

key markets

Rest of World-Truck

India

Rest of World-Engine

•

Russia

•

India

•

China

•

Grow existing

markets

-

Latin America

-

South

America

•

Commercial growth

India and exports

20

2008 Liquidity

2007/2008 FY ($ millions)

Unaudited

Mfg. Cash Bal.:

10/31/2007

9 months

ended

July 31, 2008

Forecast

2008

October 31, 2006

$1,214

October 31, 2007

$722

$722

Approx. Cash Flows:

From Operations

($191)

$90

large source

Dividends from NFC

$400

$15

small use

From Investing / (Cap Ex)

($221)

($157)

large use

From Financing / (Debt Paydown)

($480)

($94)

large use

Mfg. Cash Bal.:

October 31, 2007

$722

July 31, 2008

$576

October 31, 2008 Fcst

$750 - $850

*

*The

above

unaudited

non-GAAP

manufacturing

cash

flow

information

has

been

revised

to

reflect

the

correction

of

certain

errors.

The

corrections

within

the

unaudited

non-GAAP

manufacturing

cash

flow

information,

which

are

not

considered

material,

had

no

effect

on

previously

reported

unaudited

non-GAAP

manufacturing

cash

balances.

21

Debt

DEBT

YE 2005

YE 2006

YE 2007

2007 - 3Q

2008 - 3Q

($Millions)

Manufacturing operations

January 2007 Loan Facility (Libor + 325)

-

$                         

-

$                         

1,330

$                 

1,445

$                  

1,330

$                

Bridge Loan Facility (Libor + 500)

-

1,500

-

-

-

Financing arrangements and capital lease obligations 

408

401

369

376

315

6.25% Senior Notes

400

-

-

-

-

9.375% Senior Notes

393

-

-

-

7.5% Senior Notes

249

15

15

15

15

Majority owned dealership debt

245

484

267

326

184

4.75% Subordinated Exchangeable Notes, due 2009

202

1

1

2.5% Senior Convertible Notes

190

-

-

-

-

9.95% Senior Notes

13

11

8

9

6

Other

24

61

40

47

34

Total manufacturing operations debt

2,124

$                

2,472

$                

2,029

$                 

2,219

$                  

1,885

$                

Financial services operations  

Borrowing secured by asset-backed securities, at variable rates, due serially through 2011

2,779

$                

3,104

$                

2,748

$                 

2,899

$                  

2,371

$                

Bank revolvers, variable rates, due 2010

838

1,426

1,354

1,224

1,401

Revolving retail warehouse facility, variable rates, due 2010

500

500

500

500

500

Commercial Paper

-

28

117

115

249

Borrowing secured by operating and finance leases

148

116

133

139

127

Total financial services operations debt

4,265

$                

5,174

$                

4,852

$                 

4,877

$                  

4,648

$                

Cash & Marketable Securities

YE 2005

YE 2006

YE 2007

2007 - 3Q

2008 - 3Q

Manufacturing non-GAAP (Unaudited)

867

$                    

1,214

$                

722

$                     

607

$                      

576

$                    

Financial Services non-GAAP (Unaudited)

53

79

61

72

120

Consolidated US GAAP

920

$                    

1,293

$                

783

$                     

679

$                      

696

$                    

(Audited)

(Audited)

(Unaudited)

(Unaudited)

The

above

non-GAAP

financial

measures

are

unaudited

and

reflect

a

2007

change

in

segment

reporting

methodology.

This

presentation

is

not

in

accordance

with,

or

an

alternative

for,

U.S.

generally

accepted

accounting

principles

(GAAP).

The

non-GAAP

financial

information

presented

herein

should

be

considered

supplemental

to,

and

not

as

a

substitute

for,

or

superior

to,

financial

measures

calculated

in

accordance

with

GAAP.

However,

we

believe

that

non-GAAP

reporting,

giving

effect

to

the

adjustments

shown

in

the

reconciliation

above,

provides

meaningful

information

and

therefore

we

use

it

to

supplement

our

GAAP

reporting

by

identifying

items

that

may

not

be

related

to

the

core

manufacturing

business.

Management

often

uses

this

information

to

assess

and

measure

the

performance

of

our

operating

segments.

We

have

chosen

to

provide

this

supplemental

information

to

investors,

analysts

and

other

interested

parties

to

enable

them

to

perform

additional

analyses

of

operating

results,

to

illustrate

the

results

of

operations

giving

effect

to

the

non-GAAP

adjustments

shown

in

the

above

reconciliations

and

to

provide

an

additional

measure

of

performance.

Pension

Cash Pension Impacts

•

Quarterly cash funding requirements for 2009 are already set based on

1/1/2008 valuation

–

$25 million for 2009

•

Poor stock market returns during 2008 will increase our 2009 funding

requirement, which will impact cash in 2010

•

Stock market returns during 2009 will reset cash funding requirements for 2010

and beyond

Income Statement Pension Impacts

•

October 31 is the key measurement date for pension impacts on the income

statement

•

2008 investment losses will be smoothed in accordance with FASB rules:

–

Amortized

over

average

future

lifetime/service

(approx.

15

-

17

years)

•

One-time items in 2008 will drive pension income; 2009 is expected to return to

expense, however, it is too early to determine the exact amount

22

23

NFC Liquidity Remains Strong

•

NFC retail activity primarily funded by facilities that do not require refinancing until 2010

•

NFC has continued to obtain access to bank conduit markets to fund retail note acquisitions

•

Over $1.2 B in retail notes have been financed since the subprime issues began to impact the

asset securitization market

•

We have sufficient credit capacity to absorb refinancing

–

High portfolio credit quality permits continuing access to bank conduits

•

Serviced receivables balances tracking to truck market trough

Retail Notes

Bank Revolver

•

Current Situation

–

$0.9 B DFP receivables

–

$1.0 B Funding Facility

(NFSC)

•

NFSC terms

–

Bank conduit portion

renewed October 2008

–

Public portion matures

February 2010

Off-balance sheet

•

$500 million revolving

warehouse (TRIP)

–

Acquired notes sold into TRIP

–

TRIP warehouses, then

securitizes via bank conduits

•

TRIP terms

–

Matures July 2010

On-balance sheet

•

$1.4 B Facility

–

Initial funding of retail

note acquisitions

–

Also funds

dealer/customer

open accounts

•

Revolver terms

–

Matures July 2010

On-balance sheet

Dealer Floor Plan (DFP)

24

Liquidity Summary

•

We have sufficient liquidity/borrowing capacity to execute our

strategies

•

Parent company has no need to refinance in near-term

–

Benefiting from lower Libor interest rate

–

Refinancing will be opportunistic to stagger maturities

•

Recent key financing renewals ensure NFC liquidity

–

Next significant refinance date is late 2009

•

Recently announced asset impairment charges are predominately

non-cash in nature and therefore do not impact NIC’s Fixed Charge

Coverage Ratio Covenant in $1.5 billion term loan agreement

Summary

•

Strategic direction of corporation and actions are on track

•

2009 and 2010 industry uncertain

•

Actions to offset include:

–

Products (market share)

•

Fuel economy

•

LoneStar

®

/ProStar™/WorkStar™

•

EGR vs. SCR

–

Cost

•

Accelerate sourcing/design cost take out

•

Manufacturing

•

SG&A

–

Growth (additional)

•

CAT Impact

•

Diesels -

Rest of World

•

Commercial bus

25

•

China

•

Military

•

LCOE and Waste segment of market

•

Parts

Appendix

27

SEC Regulation G

Based on

414,500

Industry*

*Navistar intends to update on 4Q08 earnings call

FY 2006

($Billions)

FY 2007

($Billions)

As Reported

As Reported

Revenues

$14

$12

($Millions)

($Millions)

Consolidated Income Before Income Tax

$395

($73)

$525

$610

$1,100

$1,270

Taxes Benefit (Expense)

($94)

($47)

($58)

($62)

Net Income (Loss)

$301

($120)

$467

$548

Diluted EPS

$4.12

($1.70)

$6.35

$7.45

2008 Full year estimate number of diluted shares 73.5 Million

($Millions)

($Millions)

Guidance

Goal

~$15

$15+

Full Year

FY 2008

($Billions)

FY 2009

($Billions)

The

above

non-GAAP

financial

measures

are

unaudited

and

reflect

a

2007

change

in

segment

reporting

methodology.

This

presentation

is

not

in

accordance

with,

or

an

alternative

for,

U.S.

generally

accepted

accounting

principles

(GAAP).

The

non-GAAP

financial

information

presented

herein

should

be

considered

supplemental

to,

and

not

as

a

substitute

for,

or

superior

to,

financial

measures

calculated

in

accordance

with

GAAP.

However,

we

believe

that

non-GAAP

reporting,

giving

effect

to

the

adjustments

shown

in

the

reconciliation

above,

provides

meaningful

information

and

therefore

we

use

it

to

supplement

our

GAAP

reporting

by

identifying

items

that

may

not

be

related

to

the

core

manufacturing

business.

Management

often

uses

this

information

to

assess

and

measure

the

performance

of

our

operating

segments.

We

have

chosen

to

provide

this

supplemental

information

to

investors,

analysts

and

other

interested

parties

to

enable

them

to

perform

additional

analyses

of

operating

results,

to

illustrate

the

results

of

operations

giving

effect

to

the

non-GAAP

adjustments

shown

in

the

above

reconciliations

and

to

provide

an

additional

measure

of

performance.

This

guidance

excludes

charges

associated

with

any

loss

of,

or

a

significant

reduction

in,

business

from

Ford

or

the

early

termination

or

non-renewal

of

our

agreement

with

Ford.

See

Item

1A

Risk

Factors

of

the

3

quarter

Form

10-Q

for

more

information

with

respect

to

Ford.

On

November

12,

2008,

Navistar

filed

with

the

SEC

a

Form

8-K

disclosing

an

impairment

charge

related

to

its

Vee

business

unit.

This

work

is

ongoing,

but

the

Company

estimates

that

it

will

record

expenses

ranging

from

$375

to

$430

million,

the

majority

of

which

are

expected

to

be

recognized

in

the

4

quarter

of

fiscal

2008.

These

charges

are

primarily

non-cash

in

nature

and

therefore

do

not

count

toward

the

company's

fixed

charge

coverage

ratio.

th

rd

Q&A

28

Q:

What do you finance at Navistar Finance Corporation (NFC)?

A:

NFC is a commercial financing organization that provides wholesale, retail and lease financing for sales of new

and used trucks sold by the company. NFC also finances the company’s wholesale accounts and selected retail

accounts receivable. Sales of new truck related equipment (including trailers) of other manufacturers are also

financed.

Q:

What percentage of truck purchases do you fund?

A:

We consistently fund about 95% of floor plan inventory for our dealers in the U.S., and approximately 15% of

retail

purchases

by

customers.

That

15%

will

fluctuate

depending

on

market

conditions,

and

we

expect

to

see

it

rise in the near-term, as other banks stop financing truck purchases.

Q:

When is the next refinancing due at NFC?

A:

All financing facilities have been extended, and we do not need to renew any facility until October 2009.

Q:

What are your retail notes funded by?

A:

The retail notes are primarily funded by a bank revolver and a revolving warehouse that we call TRIP.  Both of

these

facilities

don’t

mature

until

mid

2010.

These

notes

are

ultimately

sold

to

either

a

conduit

facility

or

into

a

public securitization.

Q:

Are there any requirements for NFC leverage?

A:

NFC

is

compliant

with

our

Revolver

leverage

covenant

of

6

to

1.

This

ratio

calculation

excludes

securitization

debt.

Q:

How are your securitization rates determined?

A:

Portfolio

performance,

deal

structure

and

market

conditions

affect

pricing.

Also

asset

class,

Retail

versus

Wholesale versus Trade Receivable would affect pricing as may some structural elements.

Q&A

29

Q:

What

is

your

funding

strategy?

How

do

you

match

maturities

of

the

liabilities

with

the

asset

profile?

How much duration risk is there if the credit markets were to shut you down for a period

of time?

A.

We

use

three

or

four

primary

funding

sources.

For

our

longer

term

retail

truck

notes

that

finance

the

sale

of trucks to end customers, we finance those in the term securitization markets either in public deals or

with the banks. We primarily finance our wholesale in traditional private or public securitizations. We also

have a combination of revolving type facilities that often warehouse assets until they can be financed

permanently.

Q:

How are your loan losses?

A.

The

provision

for

losses

is

primarily

driven

by

our

actual

credit

losses.

Our

loss

ratio

(including

Truck’s

share) year-to-date is a running a little over 1%.

The loss ratio in the last cycle in 2001 approached

3.0%, and we don't anticipate getting close to those levels. With respect to NFC, its serviced retail note

portfolio ,YTD losses, as a percentage of total retail receivables were running at 0.80% as of July 31,

2008.

60

day

delinquencies

through

7/31/08

for

retail

were

running

at

approximately

1%

and

have

been

well managed through the remainder of the year. Our reserves as a percentage of assets are

comparable with that 1% level and we believe are appropriate given current market conditions.

Q:

How are your repossessions trending?

A:

Repossessions were slowing down.

It is too early to tell if the current turmoil in the markets will require

increased repossession activity in the future.

To a great extent, fleets have already right sized and fuel

costs have rapidly come down, which is all good news.

Q&A

30

Q:

How are your wholesale balances and dealers doing?

A:

Wholesale balances have actually come down recently.

We think our dealers, which have always

been

one

of

our

strengths,

are

well

positioned

in

this

area.

We

have

never

had

any

significant

dealer

losses and expect that trend to continue in the future.

Q:

Are your rates going to increase?

A:

Like all lenders, we need to achieve a profitability threshold to ensure our continued access to capital,

and

that

means

pricing

our

rates

in

line

with

the

marketplace.

So,

yes,

as

the

cost

of

financing

increases for all companies, we are going to need to share some of the increase with our dealers and

customers.

Q:

What kind of rates do you charge your dealers and customers?

A:

Generally, our rates vary of course (those with higher credit risk have always had to pay higher interest

rates) and are usually in line with the market.

Q:

How

do

you

make

your

credit

decisions?

Do

you

require

a

certain

credit

score?

A:

We

factor

in

a

variety

of

criteria

that

includes

FICO

scores

but

also

weighs

factors

such

as

business

model, company history, down payment, etc.

Q:

What is our total amount of capacity at NFC?

A: As of July 31, 2008, total availability in

our funding facilities was $1.1BB.

Plus we had $90 MM of

availability in the Credit Suisse deal which we topped up in September.