Navistar Shuts Down Ontario Plant, Expecting $30 Million in Savings

Navistar International Corp. passes trough some rough times in its existence. The truck and engine manufacturer is shutting down a facility and restructuring other businesses which could possibly result in up to $30 million in annual savings and 675 job cuts. Navistar makes plans to close its Chatham, Ontario, truck manufacturing facility, where the workers were on layoff status for two years as a result of the company’s inability to reach an agreement with the Canadian Auto Workers.

The Chatham production has been moved to other Navistar truck plants. Shutting Down the Chatham facility is a “devastating blow” to the workers, the family and the community explained Canadian Auto Workers (CAW) President Ken Lewenza.

"Despite our relentless efforts since 2009 to reopen the idled facility and get our members back to work, Navistar has remained rigid and is now moving ahead with plans to shutter the plant,"Ken Lewenza was quoted as saying by autonews.com. Navistar plans to scale back at its Monaco recreational vehicle unit and motor coach manufacturing facility in Coburg, Oregon, which will result in a massive layoff of about 450 workers, said Keren Denning company’s spokesman.

All motor coach building will happen at Monaco’s Wakarusa, Indiana manufacturing facility. Navistar forecasted restructuring and asset impairments related to the Chatham closing to result in incomes of $100 million to $300 million, mostly being from pension and retiree healthcare costs. Also worth mentioning the fact that the Monaco consolidation may result in about $100 million charges. After the business rescheduling Navistar expects saving of $20 million to $30 million yearly.