Navistar to Restructure North American Business
Apart from closing its idled Chatham, Ontario, truck manufacturing operation, Navistar is also planning to rationalize and integrate its RV and chassis businesses.
As part of the plan, the company will significantly scale back operations at its Monaco headquarters and motor coach manufacturing plant in Coburg, Oregon, which will impact approximately 450 people. Certain functions will be consolidated at Navistarâ€™s new corporate campus in Lisle, Ill.
All motor coach production will be consolidated at Monacoâ€™s Wakarusa, Indiana, manufacturing facility. The move is expected to add about 400 jobs at that facility.
The company is planning to continue towables production and retain certain finance and information systems operations in Oregon, as well as maintain a RV service center there.
Navistarâ€™s Workhorse Custom Chassis subsidiary is planning to close its Union City, Indiana, chassis plant. These operations will be consolidated into other existing Navistar facilities for efficiency and productivity. The move will impact about 225 employees.
The actions related to the Monaco/Workhorse consolidation may result in charges of approximately $100m, which are predominantly related to expected asset impairments.
Most of the restructuring charges are expected to occur in the third and fourth quarters 2011, with the remainder taking place in 2012.
Dee Kapur, president of Navistar Truck Group, said: â€œWe understand the impact these decisions have on our employees. We will treat people with respect and provide support to help them with their transitions.
â€œFrom a capacity standpoint, we are well positioned to meet demand expected in the last half of 2011 and further increases in 2012. Weâ€™re seeing tremendous benefit from our flexible manufacturing strategy, which allows us to build more trucks- and a wider variety of them - at various plants.â€
Will the move streamline the companyâ€™s North American operations?
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