Navistar Extends Stoppage at Springfield, Ohio, Truck Plant
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Navistar International Corp. extended the stoppage at its medium-duty truck assembly plant in Springfield, Ohio, through early May due to component supplier constraints.
Production had originally been set to restart April 27.
The company also reported it is implementing a series of temporary cost-reduction measures to further preserve financial flexibility.
Its International Truck and IC Bus dealership service facilities and parts distribution centers are continuing regular operations.
“With considerable uncertainties surrounding the coronavirus, we have been monitoring the situation closely and decided to take actions to reduce costs and maximize financial flexibility and liquidity to best position Navistar for the future,” Navistar CEO Troy Clarke said in a release.
The cost reduction actions include:
- Postponement of 30% of capital expenditures
- Postponement of 30% in funding for information technology projects
- Reducing the work week by 20% for contractors
- Deferral of 35% to the base salary of the CEO and board compensation
- Deferral of 10% to 30 % to the base salary of U.S. salaried exempt, nonrepresented employees.
In total, the Lisle, Ill.-based company expects to conserve $300 million in cash over the balance of its fiscal year, ending Oct. 31.
It said its consolidated cash and cash equivalents, and manufacturing cash and cash equivalents, both exceeded $1 billion. — Transport Topics
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