Navistar said the labor strike directed against General Motors will result in $140 million in lost sales.
The six-week strike by the United Auto Workers affected production at Navistar’s Springfield, Ohio, truck-assembly plant, resulting in a shutdown. The company said it was unable to deliver approximately 5,000 vehicles during its fiscal fourth quarter, citing closures at certain GM facilities and affiliated suppliers.
"We are pleased that we have resumed production at our Springfield, Ohio truck assembly plant last week," said Walter G. Borst, executive VP and CFO, in a prepared statement. "However, the shutdown of our Springfield plant affected our workforce and the delivery of certain units to customers."
The affected vehicles included the cutaway model of GM's G Vans, Class 4/5 trucks, and other commercial vehicles. Navistar and GM have a long-term agreement to develop and assemble medium-duty, conventional cab Class 4/5 commercial vehicles. The two companies also have an agreement under which Navistar manufactures the cutaway model of GM's G Van.
Source: Navistar
