Navistar truck plant in Ontario to remain open

| 9/5/2003

Navistar International Corp. said Sept. 4 it would not shut down a heavy-duty truck plant in Chatham, Ontario, after the Canadian and provincial governments agreed to subsidize the factory.

In addition, the Canadian Auto Workers union is investing in the plant’s future, Navistar said in a release.

Although Navistar had originally announced last October that it would close the plant, in May it reached an agreement to keep the plant open if it got financial support from the Chatham-Kent municipal government, the federal government of Canada and Ontario provincial government.

The company said it did not expect the decision to reduce its fourth-quarter earnings outlook from Aug. 15, when it predicted it would report earnings of between 65 cents and 75 cents per share.

Navistar said in May the plant was producing an average of 35 trucks per day. At its peak, the plant was producing more than 120 trucks per day.