Navistar to resume production in Springfield on Monday

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Springfield News-Sun  /  October 29, 2019

Navistar is scheduled to resume production on both of its assembly lines in Springfield on Monday after shutting them down last month due to a parts shortage caused by a national strike against General Motors.

Chris Blizard, the president of UAW Local 402, said representatives of Navistar expect to start receiving parts this week following the end of the 6-week GM strike called by the United Auto Workers union.

The move to shutdown both those lines affected about 1,400 assembly production workers, said Blizard. He said impacted employees will return to work next week if everything goes according to plan.

Navistar builds medium-duty commercial trucks, including those for GM, on its main line and GM cutaway vans on its line two.

Blizard also estimates that about 300 workers, mainly from the Springfield plant’s paint department and cab line, who have been temporarily laid off as a result of the parts shortage, will return to work this week.

Those workers will prepare the lines this week so production can resume on Monday.

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UAW Strike Costs Navistar Millions in Revenue Due to Production Delays

Heavy Duty Trucking (HDT)  /  November 13, 2019

Navistar International announced that the six-week strike of the United Auto Workers union at General Motors has impacted the company’s ability to deliver about 5,000 vehicles to customers causing the company to lower fourth quarter revenue guidance.

The company estimates that lost production due to the strike is expected to impact the company’s revenue and adjusted EBITDA by approximately $140 million and $15 million, respectively.

"We are pleased that we have resumed production at our Springfield, Ohio truck assembly plant last week," said Walter G. Borst, executive vice president and chief financial officer, Navistar. "However, the shutdown of our Springfield plant affected our workforce and the delivery of certain units to customers. As a result, our 2019 full year revenue and adjusted EBITDA is now expected to be at the low end of our guidance range."

The strike at GM affected the delivery of certain components to Navistar’s Springfield, Ohio truck assembly plant due to production shutdowns at GM facilities and affiliated suppliers. Navistar was forced to halt production at the Springfield plant on September 23, suspending production of GM-branded vehicles as well as Navistar’s own commercial trucks.

On November 4, Navistar resumed production at its Springfield plant. The company’s decision to halt production at the Springfield plant impacted approximately 1,500 plant workers and the delivery of approximately 5,000 vehicles to customers. Affected vehicles included the cutaway model of GM's G Vans, Class 4/5 trucks, and other commercial vehicles.

In late 2018, Navistar and GM signed a long-term agreement to develop and assemble medium-duty, conventional cab Class 4/5 commercial vehicles. The two companies also have an agreement under which Navistar manufactures the cutaway model of GM's G Van.

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