Navistar to lay off 170 workers


Navistar has announced plans to lay off 170 workers at a facility in Melrose Park, Ill., as it ceases all engine production at that facility by the second quarter of 2018.

“Ending production anywhere is a difficult decision because it affects employees,” said Persio Lisboa, chief operating officer for Navistar, in a statement. “We continue to be committed to investing in our Melrose Park facility as we complete its transformation into a technical center that is integral to our product design, engineering and sales teams. Given the investments we’ve made, we expect to have a significant presence in Melrose Park for years to come.”

READ MORE: $12M Navistar project could retain 114, add 40 new jobs in Urbana

The decision isn’t expected to impact workers in Springfield, said Lyndi McMillan, a spokeswoman for the company.

The layoffs will affect about 140 line workers and about 30 managerial and other positions in Illinois, McMillan said.

Navistar is a major employer in Springfield, where it employs about 1,500 workers. Thousands of the company’s retirees also live in the area.

Jason Barlow, president of the UAW Local 402, which represents the majority of workers in Springfield, also said the company’s decision won’t impact the local workforce.

MORE: Navistar to add 300 jobs in Springfield with second GM deal

The engines produced at the Melrose Park facility are typically used in box trucks, including those produced in Springfield, McMillan said. But she said the decision means those trucks will be equipped with a different engine.

Most of the hourly workers impacted by the layoff are retirement eligible, according to information from the company. Assistance and opportunities for retraining will also be offered.

DETAILS: Navistar stock jumps nearly 400 percent, VW deal cited as key

The engines produced at Melrose Park were a niche product and it was no longer viable for the company to continue to manufacture the product, McMillan said. The decision will reduce Navistar’s operating costs by about $12 million annually, according to information from the company.

“As we approach future regulatory requirements, the low volume nature of the platform could not justify further product development investments on it,” Lisboa said.

RELATED: N avistar, major Springfield employer, reports $62M loss



Reader Comments


Next Up in Business

CareSource gets latest report card from state
CareSource gets latest report card from state

CareSource’s performance rating slipped in some categories on its latest report card from Ohio Medicaid, though retained high marks for its efforts to keep children healthy. The nonprofit insurer, headquartered in downtown Dayton, overall received 14 out of 25 stars, ranking 3rd out of the five insurers that privately manage Medicaid plans in...
Trump nominates new commander of Air Force Materiel Command
Trump nominates new commander of Air Force Materiel Command

President Donald Trump has nominated Lt. Gen. Arnold Bunch Jr. to become commander of the Air Force Materiel Command at Wright-Patterson Air Force Base. Bunch currently serves as military deputy at the Office of the Assistant Secretary of the Air Force for Acquisition at the Pentagon. The nomination must be confirmed by the Senate. If confirmed, Bunch...
Dayton VA director says hospital to focus on new jobs, programs in 2019
Dayton VA director says hospital to focus on new jobs, programs in 2019

Dayton VA Medical Center Director Jill Dietrich told the Dayton Daily News that she’s focused on growing new programs, adding jobs and “continuing to provide excellent care” in 2019. Dietrich, who manages 2,300 employees and a $435 million budget, has oversight of the sprawling hospital campus in Dayton and four clinics in in Richmond...
Honda applies to build $36.5 million expansion
Honda applies to build $36.5 million expansion

Honda appears to be gearing up for a big expansion at its Anna engine plant. The automaker has recently applied to Shelby County for a new building construction permit valued at $33 million. The Honda of America and Devon Industrial Group application — filed near the end of November — seeks permission to build a 119,063-square-foot building...
Employers say they’re poised to hire in 2019
Employers say they’re poised to hire in 2019

Employers in the Dayton area will hire at a “respectable” pace in the first quarter of the new year, according to Manpower’s newest survey of area employers. Nearly a quarter — 24 percent — of surveyed employers plan to hire new employees from January to March next year, the survey found. This number is offset by the four...
More Stories