Ford Cuts Mean Navistar Cuts

Posted on August 29, 2006

Navistar International Corp. said that previously announced production cuts by Ford Motor Co. will result in an October schedule change at Navistar’s Indianapolis, Ind., diesel engine assembly plant necessitating the layoff of employees.

Ford said on August 18 that it would cut car and truck production by 21 percent through the end of the year and temporarily stop production at 10 assembly plants. The Power Stroke 6.0-liter V-8 diesel used in the Ford F-Series Super Duty pickup truck is produced at the plant operated by International Truck and Engine Corp., Navistar's operating company.

Sergio Sgarbi, plant manager, said that the new production schedule that will go into effect beginning October 2 will result in the layoff of approximately 380 employees represented by the United Auto Workers union. Layoffs will also impact non-represented employees, but the final number has not yet been determined. The plant is just coming off a previously announced two week shutdown and another week of shutdown is scheduled to begin September 11, 2006. Navistar said details of the new product schedule are not being released for competitive reasons.