Navistar Racing the Clock

Walsh feels that two major strengths set Navistar apart from the pack. First, he says, the company ranks as a major commercial truck manufacturer whose operations -- once focused exclusively on the military -- date back 100 years. Second, he says, the company boasts an impressive assembly line that can crank out some 30,000 vehicles per year. By bolting rather than welding blast protection to its trucks, he adds, the company can deliver MRAP vehicles far more rapidly than others.

Still, Navistar could face tougher demands going forward. Notably, the U.S. military is calling for even sturdier vehicles -- capable of withstanding hits from sophisticated "explosively formed penetrators" -- under a greatly expanded program popularly known as MRAP II.

Current MRAP vehicles, including Navistar's own, have been designed to shield against crude improvised explosive devices. But a newcomer to the MRAP competition, Ceradyne (CRDN Quote), claims that it has developed EFP protection already. The company, which is partnering with giant truck maker Oshkosh (OSK Quote), is viewed as an early favorite for MRAP II awards as a result.

For its part, Navistar -- while still evaluating the new requirements -- plans to be a serious MRAP II contender as well.

"We'll put together a solution," Walsh said. "And hopefully, we'll be fortunate enough to get an order. ... We'll go after MRAP II just as much as we did MRAP I."

Looking ahead, Navistar clearly feels that a year from now -- when its temporary poison pill is set to expire -- it will emerge as a far more valuable company. Some industry experts seem to agree.