AM I NEXT? NO LOVE AT NAVISTAR (04/29/21)

Am I Next? Business decline at Navistar results in layoffs.

APRIL 29, 2021 — GOOD NEWS AT SPRINGFIELD, OHIO PLANT WITH RECALLS AND NEW HIRES

Once again, we see a manufacturer balancing their personnel-to-workload, this time with a recall of laid-off employees and up to 350 new hires.

According to a company spokesperson, “The increase is due to our order board being up and adjusting our production schedules according to demand. All previously laid-off employees will be given the opportunity to return to work. We are looking to hire additional employees to support the increased production.”

JANUARY 14, 2021 — MELROSE PARK, ILLINOIS FACILITY CLOSURE: 250 LAYOFFS AND 250 TRANSFERS

The company has announced that it plans to close and sell its Melrose Park, Illinois, facility resulting in 250 layoffs and 250 transfers to other facilities.

According to a company statement from Phil Christman, Navistar president of operations, “Given changes at Navistar and in the industry, it no longer makes sense to maintain a facility of that size. Further investment in the Melrose Park property would divert substantial resources away from investments in new technologies and products. While this decision is difficult, it is necessary to best position Navistar for the future and to unlock economic growth for the Melrose Park community.”

FEBRUARY 8, 2020 — COMPANY CONSIDERS VOLKSWAGEN BUYOUT

Traton, Volkswagen’s commercial truck unit, has proposed to buy the remaining shares of Navistar for $2.9 billion. Traton owns approximately 16.8% of Navistar shares with billionaire activist investor Carl Icahn being the company’s largest individual shareholder.

JANUARY 22, 2020 — 106 LAYOFFS AT SPRINGFIELD, OHIO ASSEMBLY PLANT

The company plans to lay off approximately 106 workers at its Springfield, Ohio plant which builds medium-duty commercial trucks as well as cutaway vans for General Motors. The layoffs continue the layoff pattern that started in 2019.

According to a company spokesperson, “In order to realign production with the current demand for our products, we will be adjusting line rates at our Springfield Assembly plant. This action is normal due to the cyclical nature of our business.”

SEPTEMBER 24, 2019 — Original post…

Lisle, Illinois-based Navistar, a manufacturer of commercial vehicles and components, has announced that it will be laying off 136 unionized assembly production workers at its Springfield, Ohio plant. The decision is an economic one conditioned by marketplace demand and the company’s overall production capacity. According to a company spokesperson, “Production line rates will be reduced in order to realign production with current demand. This cycle is normal for our business, and this is not a shift of production to other locations.”

According to a spokesperson for the United Auto Workers, ‘Layoffs will be administered based on seniority and affected workers will retain recall rights at the plant.”

In the 2019 Q3 earnings call, Troy Clarke, Navistar’s Chairman, President, and Chief Executive Officer noted, “Navistar’s backlogs are declining as well, and as you have seen, we are actively managing this by adjusting assembly line rates to create a balance between customer demand, inventory levels, and a healthy backlog. Today weaker U.S. orders, as well as lower Mexico and Latin America orders have resulted in the need to reduce assembly line rates in both of our truck plants. We make these types of decisions every day, actively managing our business appropriately with the goal of an efficient, order-to-delivery process. As a result, total company and dealer inventories remain at the low-end of the normal range at 85 days.” 

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?