Navistar builds Class 4-5 medium-duty pickups for GM and its International brand at its Springfield, Ohio, plant. Production shutdowns at GM facilities and affiliated suppliers caused parts shortages that resulted in the inability to build 5,000 trucks.
GM suppliers large and small all suffered financially during the strike, which crippled production of components and parts for GM passenger vehicles. Production resumed last week following the UAW’s ratification of a new four-year agreement with GM.
“However, the shutdown affected our workforce and the delivery of certain units to customers,” said Walter Borst, Navistar executive vice president and chief financial officer.
Navistar did not indicate whether any of the lost production could be made up. GM and Navistar may pass on making up the lost production because of softening orders for medium-duty trucks.
Adjusted earnings before interest, taxes, depreciation and amortization will be $15 million lower. Fiscal-year earnings are “expected to be at the low end of our guidance range,” Borst said.
GM and Navistar signed a contract in late 2018 for the Chevrolet Silverado medium-duty pickup to be assembled in Springfield, which also manufactures the cutaway model of the G van.
Navistar halted production in Springfield on Sept. 23, suspending production of GM-branded vehicles and its own commercial trucks, temporarily laying off approximately 1,500 workers.
Separately, the UAW struck Mack Trucks for 12 days in October, shutting down six facilities in three states and temporarily idling Volvo Trucks North America’s only assembly plant. The Volvo Group siblings share engines and transmissions from a plant in Hagerstown, Maryland idled by the UAW strike.