Transmission shortages force layoffs at Navistar

CHICAGO (June 9) — Navistar International Corp. will cut production at its truck plant in Springfield, Ohio, this month because demand for trucks has outpaced the supply of automatic transmissions.

Nearly 700 workers will be laid off because of the shortage. The Springfield plant builds medium-duty trucks and school buses.

James L. Simonton, vice-president of purchasing and supplier development, said the shortage was anticipated. “While some of our customers have switched to manual transmissions, many prefer to wait for an automatic,” he said. “We anticipate that supply problems will ease in the fall.”

The company said production increases at other assembly plants would make up for any shortfall at Springfield.

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