Navistar, the international truck and engine corporation based in Lisle, will stop producing engines at its Melrose Park location, according to an Aug. 3 report in Crain’s Chicago Business.
The move, which will reportedly take effect next year, will mean that 170 employees will be laid off, a company spokesperson told Crain’s.
“Many of the employees are eligible for retirement, said Lyndi McMillan, a spokeswoman for the Lisle-based manufacturer,” Crain’s reports. “After the layoff, 400 employees will remain at the facility in two separate units: truck and engine testing and used truck sales and reconditioning.”
The company told Crain’s that sales of the 9/10 liter engine that’s made at the Melrose Park facility are low. Although the cuts will cost Navistar around $43 million ($8 million of that in cash) in the short-term, the layoffs will translate into cost-savings of $12 million a year, according to the Crain’s report.
Navistar may retain some of the workers who are salaried, redeploying them somewhere else, McMillan told Crain’s.
In May, Navistar held a grand opening of its new flagship Used Truck Center in Melrose Park
The opening was the culmination of efforts by Navistar to consolidate its engine testing operations, Used Truck Reconditioning Center, certified technicians and used truck sales into a single location, company officials said at the time.
Last year, Navistar closed a reconditioning center that was in Indianapolis and relocated those operations to the Melrose Park location. Read the full Crain’s report here (note: a subscription may be necessary to access the article). VFP
Feature photo: A detail manager in Miami, Florida washes the grill of a Navistar truck in 2012. | Getty Images