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

Kroger finalizes merger with Home Chef meal delivery company
Kroger finalizes merger with Home Chef meal delivery company

The Kroger Co. finalized a merger with meal delivery company Home Chef this week as the Cincinnati-based company seeks to speed up growth in the meal kit market. Home Chef will operate as a Kroger subsidiary and will assume responsibility for the grocer’s meal kit initiatives. Home Chef meal kits will now be featured in Kroger’s portfolio...
Dream job alert: Ohio’s first Legoland Discovery Center hiring 40 people
Dream job alert: Ohio’s first Legoland Discovery Center hiring 40 people

Ohio’s first Legoland Discovery Center is looking for 40 full-time and part-time employees in a July hiring push. Open interviews at the indoor playground’s job fair will be July 13 to 15. The company is looking for experience in food and beverage, retail, admissions and custodial roles, according to a release. Legoland will open Sept....
Recalls: Ladders and scarves 
Recalls: Ladders and scarves 

Dangerous ladders and women’s scarves are on this week’s list of recalled products from the Consumer Product Safety Commission. One person has reportedly been hurt in a fall from a broken Werner Multipurpose Telescoping Aluminum ladder.  There are five models with the following model numbers, date codes, and sizes, under recall: ...
Fifth Third Bank to lay off undisclosed number of employees
Fifth Third Bank to lay off undisclosed number of employees

Fifth Third Bancorp is cutting jobs in the region, bank officials are telling the media. The company is not discussing the number of employee layoffs or how many are happening in the Dayton area. No notice of layoffs appeared on the state’s “WARN” (Worker Adjustment and Retraining Notice Act) notice board as of early Friday. Typically...
Documenting growth: O’Neil seeks up to 100 new workers
Documenting growth: O’Neil seeks up to 100 new workers

A year ago, Hernan Olivas was several months into his new role as chief executive of technical documentation and engineering firm O’Neil & Associates. After the unexpected passing of his predecessor, Robert Heilman, Olivas saw his mandate pretty clearly: Raise the revenue bar. Explore revenue possibilities locally, including at Wright-Patterson...
More Stories