Navistar Expands Production Suspension; Allison Pauses Work Too

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Navistar International Corp. announced it is broadening its temporary suspension in manufacturing operations to its engine assembly plant in Huntsville, Ala., and truck assembly plant in Escobedo, Mexico. Production will resume at both locations April 13.

The Lisle, Ill.-based company’s truck assembly plant in Springfield, Ohio, temporarily ceased production March 23 due to disruptions in the supply chain resulting from the COVID-19 pandemic. With the supply chain still interrupted, this stoppage is being extended. Production will resume April 27.

At the Springfield plant, Navistar manufactures General Motors’ cutaway G van as well GM’s Classes 4-5 vehicles. It also produces its own International brand MV and CV series medium-duty vehicles there, a spokesman said.

All Navistar service facilities and parts distribution centers are continuing regular operations.

At the same time, Allison Transmission Holdings Inc. announced it has temporarily suspended production at select manufacturing facilities, a step launched March 30. The company will continue to monitor the COVID-19-related situation and adjust production at other facilities as the situation warrants. It did not identify which plants were immediately affected.

Allison reported it continues to implement preventative measures while meeting the needs of customers, including increased frequency of cleaning and disinfecting of facilities, social distancing, remote working when possible, travel restrictions and limitations on visitor access to facilities.

“Allison’s long-standing commitment to prudent balance sheet management has positioned the company to navigate through this challenging period,” CEO David Graziosi said in a release.

As of Dec. 31, 2019, the company had $192 million in cash and $595 million available in revolving credit facility commitments. Allison also maintains a flexible and long-dated debt structure with the earliest long-term debt maturity due in 2024.

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