Lyndi McMillan, a Navistar spokeswoman, said that production line rates will be reduced in order to realign production with current demand.
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“This cycle is normal for our business, and this is not a shift of production to other locations,” she said of the change in an email sent to the News-Sun, adding that Navistar is still assessing the possible impact of the reduction.
The company has yet to release official numbers on how many lines will be affected by this change or if any job losses will occur as a result.
Kenny Vieth, president and senior analyst at Americas Commercial Transportation Research, said inventory of medium-duty vehicles have surpassed sales nationally.
“The industry is building faster than people are buying,” he said.
The number of net orders for medium-duty trucks as of June 2018, were 121,700 compared to the 94,300 reported at the end of June this year, according to Vieth. He said during the early months of this year, roughly 1,400 units were being produced nationwide per month.
“They need to bring production closer to what is happening on the sales side,” Vieth said. A total of 191,900 medium-duty trucks were sold in the United States last year, he said.
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The past 15 years for Navistar have been turbulent in the area as there have been a series of layoffs and hiring sprees. The number of workers at its Springfield plant dipped down to 300 as recently as 2010. However, that number has since climbed up to 2,000.
Navistar has reported strong revenue growth recently. The company reported their revenue grew by 24 percent to $3 billion in the second quarter of this year.
In 2017, Navistar entered into a joint agreement with GM to build medium-duty trucks in Springfield. That agreement included plans to create around 300 jobs in the area.
It is unclear which production lines at the Springfield facility will be effected by the reduction or how long it will last.
Amy Donahoe, director of workforce development at the Chamber of Greater Springfield, said her organization has not been alerted of any potential layoffs by Navistar. However, she said in the past the chamber has worked closely with companies during layoff cycles to make sure employees are aware of what benefits are available to them.
She said she hasn’t seen any major layoffs at Navistar in recent years. However, if layoffs do occur, she said her organization will help those effected fill local manufacturing jobs that are open.
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Facts & Figures
2,000: Number of employees that work for Navistar in Springfield
121,700: Number of medium-duty truck orders nationwide as of June 2018
94,300: Number of medium-duty truck orders nationwide as of June 2019
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