Navistar Negotiating Cuts at Ontario Truck Plant

Navistar International Corp. is considering significantly reducing its presence at an Ontario truck plant as it shifts heavy-duty truck production to other locations, Reuters reported.

The plant shut down Tuesday as a contract with the Canadian Auto Workers expired, Navistar spokesman Roy Wiley told Transport Topics.

Navistar, which has been producing vehicles in Chatham, Ontario, since 1923, could cut staff there by as much as 90%, Reuters said, citing the CAW.

Wiley acknowledged the company wanted a “much smaller operation” in Chatham and said it would mean layoffs, but declined to give a figure of the number of employees who would remain.

Except for some day cabs, Navistar builds Class 8 tractors only at Chatham and at its new plant in Escobedo, Mexico, Wiley said.

He said Navistar wanted “flexibility” with the Chatham plant, which builds only over-the-road tractors, mainly the ProStar model. Navistar built a minimum of 35 tractors a day at Chatham.

Navistar wants to build Class 8 day cabs and other heavy-duty tractors according to market needs, Wiley said, adding that the number of trucks build daily in Chatham under the new contract would be the result of negotiations.

The CAW previously agreed to concessions to keep the plant in Ontario, and the Canadian federal and provincial governments contributed C$65 million in an attempt to keep Navistar there, Reuters said.