Navistar Joins Growing List of Truck Makers to Suspend Production, Cautions Investors
Lisle, IL – Another major truck manufacturer is suspending production of its commercial vehicles in response to the COVID-19 global pandemic.
On Monday, Navistar International Corporation, makers of International Trucks, announced it was suspending production at its truck assembly plant in Springfield, OH, for two weeks.
In a statement, the company said the decision came in response to “disruptions to Navistar’s supply chain” resulting from the coronavirus crisis.
Navistar also announced it is withdrawing its previously announced financial and industry guidance for the fiscal year ending October 31, 2020.
On March 4, 2020, the company reiterated its 2020 financial and industry guidance when it announced its first quarter 2020 results for the fiscal period ended January 31, 2020 and stated its guidance may require revision, pending any change to operations due to COVID-19.
Navistar cautioned investors that “further disruptions” could occur due to the “rapidly changing environment.”
“The company believes its future financial results will be impacted, but at this time, the magnitude of those impacts is uncertain,” the company said.
Navistar’s halt in production comes only a few days after Mack Trucks and Volvo Trucks North America announced a similar suspension of production.
Last Thursday, Volvo Trucks NA officials confirmed all manufacturing of its vehicles at facilities in Macungie, PA; Dublin, VA; and Hagerstown, MD, had been suspended and will be so until at least March 27.
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Daimler Trucks North America (DTNA), makers of Freightliner Trucks, so far is taking a different course of action.
Though Daimler shut down production at its European plants last week, a widely circulated letter to North American customers indicates the company intends to continue production in the U.S. for the time being.
“The supply chain continues to be relatively stable, allowing us to continue to deliver trucks on time. So far this month, our on time-delivery rate continues to be at a very high level. The environment is changing rapidly and we are adapting every day,” the company said.
So far, Kenworth and Peterbilt have been largely quiet on the impact of COVID-19 on its operations.
Tire Manufacturers Too
Also late last week, Goodyear Tire and Rubber Co. and Bridgestone Americas announced temporary shutdowns of it production facilities in North America and Latin America.
Click HERE to find out how long these companies say the production halts will likely last.
Transportation Nation Network will continue to monitor new developments.
Photo courtesy Navistar