The decision to end production of heavy-duty trucks at the International Truck and Engine Corporation plant in Springfield, Ohio, will result in the loss of 750 to 800 jobs, the company said, according to Associated Press (AP).
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International spokesman Kyle Rose told AP that most of the job cuts, which amount to nearly one-quarter of the plant’s work force, will occur on September 6. The rest will come in the following weeks.
International, a division of Chicago-based Navistar International Corporation, announced the decision to end production last week, but did not say how many jobs would be affected, AP said.
AP said that Navistar reported a $US16 million loss for the third quarter and said closing the Springfield production line and a nearby body plant was necessary to restore profitability. The body plant, which is to be closed by the end of the year, employs 650 workers, AP added.
Associated Press said that about 3,000 workers are employed at International’s Springfield operations.
Rose told AP that the assembly plant will continue to produce the company’s medium-duty truck and that many of those to be laid off are among 700 previously laid-off workers who had been recalled to their jobs in June.
Navistar had predicted it would make money in 2002, based on anticipated demand for medium-duty trucks made in Springfield but the company lowered its forecast of 101,500 such trucks to 97,500 for the year ending Oct. 31, Associated Press said.
