News Summary

SPRINGFIELD, Ohio — Negotiations are continuing between Navistar International and General Motors Corp. for the sale of GM's Flint, Mich.-based medium-duty truck line, but the lack of information regarding an outcome has one Michigan union leader concerned the deal is on the rocks.

In December 2007, GM announced a memorandum of understanding with Navistar. The document stated Navistar would purchase certain assets, intellectual property and the rights to manufacture medium-duty GMC and Chevrolet trucks.

"We don't expect it's going to happen when it was expected. We're not even sure it's going to happen at all," said Mark Hawkins, United Auto Workers Local 598 shop chairman, in a Flint Journal article on Aug. 11.

Company representatives and Springfield area UAW Local 402 President Jason Barlow confirmed talks continue, but no one has information regarding a final announcement.

"General Motors and Navistar are still talking, but I have no idea when those talks will conclude," said Navistar spokesman Roy Wiley.

GM spokesman Tony Sapienza also said talks are ongoing.

No decision regarding the medium-duty line is having an impact in Springfield and Flint.

At Navistar's Springfield facility, layoffs will become effective Monday, Aug. 25, affecting 121 UAW members.

"We're on a down week right now," Barlow said, adding all workers currently reporting will do so next week to get the line situated for its lower production rate. Some jobs on the line will be consolidated, he said, and production will be 71 trucks per day.

Industry-wide, truck orders are down. Production rates at MAC and Volvo facilities similar to Springfield are around 68 trucks per day, Barlow said.

Rising fuel costs, EPA regulations and an overall sluggish economy are only some of the factors impacting the truck market right now.

Leaders of UAW Local 598 in Flint, currently in local negotiations with GM, issued an open letter to membership on Aug. 8 expressing concern with the lack of information coming out of the talks.

The Flint Journal reported Aug. 11 that Hawkins and Ben Mata, UAW Local 598 president, said the future of commercial truck production remains "a major issue," making negotiations on a new local agreement "very difficult and almost impossible."

The letter said, "Hopefully we will get our negotiations finished before it is too late. However, we must have answers on the (commercial truck) line ... "

GM stated earlier this year another product would be brought into the Flint medium-duty plant and no workers would lose jobs.