Navistar International set for layoffs

| 8/7/2006

Navistar International Corp., the parent company of International Truck and Engine Corp., has announced potential layoffs for its Chatham, Ontario, plant.

The plant, which produces the International 9000, had increased production from 162 units per day to 200 in January because of the widely anticipated 2006 pre-buy spurred on by added costs and stricter emissions standards for 2007 models.

Navistar International confirmed in its press release that a slowdown in production was inevitable due to the 2006 pre-buy. The company did not disclose how many jobs are in jeopardy at the plant.

The Environmental Protection Agency has required that all original equipment manufacturers lower the maximum sulfur content of heavy truck emissions from 500 parts per million to 15 parts per million. The 2007 International models, including the new ProStar, are 2007 emissions standards-ready.

The ProStar will be produced at the Chatham plant, the company reported.

All OEMs are facing similar market conditions with the 2007 standards. The expectation is that layoffs could occur at a number of OEM plants across North America, similar to the events leading up to the 2002 environmental restrictions.