International Truck and Engine Corp. said Saturday it reached an agreement with the Canadian Auto Workers union to avoid shutting down a Navistar heavy-duty truck plant in Chatham, Ontario.
International is the operating company of Navistar. It planned to close the plant on July 18 (Click here for the full story.)
The company said in a release that a final deal requires financial support from the Chatham-Kent municipal government, the federal government of Canada and Ontario provincial government.
The plan must still be approved by company management, Navistar's board of directors and CAW members.
Navistar Chief Executive Daniel Ustian said the original decision to close the plant was about the need to make it cost competitive.
"We are encouraged by the initiative taken by the CAW and the progress made by representatives from both the union and the company," he said.
Currently, the Chatham plant produces an average of 35 trucks per day with approximately 900 active employees. At its peak, the plant was producing more than 120 trucks per day.
The release said the decision on the plant would not have an impact on Navistar’s earnings for the second quarter or full fiscal year.
Last week, International said it would increase the build rate on July 21 at an Ohio facility where production includes medium-duty cabs.
(Click here for the full press release.)
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