Navistar, Volvo and Mack temporarily suspend production due to COVID-19 economic threat

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International tractor by Navistar
International tractor by Navistar

As a response to the economic impact of the novel coronavirus threat, some heavy-duty original equipment manufacturers (OEMs) have temporarily halted some aspects of their production.

Navistar International Corp. announced Monday, March 23, that it is suspending production at its truck assembly plant in Springfield, Ohio, for two weeks in response to disruptions to Navistar’s supply chain that are resulting from the evolving COVID-19 pandemic.

The company is also withdrawing its previously announced financial and industry guidance for the fiscal year ending October 31, 2020.

Last week, Volvo and Mack Trucks also announced a temporary suspension of production.

In a letter to customers dated March 21, Jonathan Randall, senior vice president of sales and marketing for Mack Trucks, said “while the situation is still very fluid, at this time we have suspended manufacturing operation.” Among other notes, Randall said Mack Trucks will maintain operations in parts-distribution centers and uptime centers.

The letter went on to say that once confirmed, Mack will inform customers and dealers of the delivery impact on truck orders.

Freightwaves reported that the Mack and Volvo production plants in Lehigh Valley, Pennsylvania, and Dublin, Virginia, as well as a powertrain plant in Hagerstown, Maryland, that feeds both assembly plants will shut down March 23-27.

In an email to media on Friday, a Daimler Trucks North America spokesperson said that because an employee at its Detroit Powertrain campus tested positive for COVID-19, the campus was closed, cleaned and disinfected, but that the facility should be up and running again today (March 23).

In a letter from Daimler leadership to fleets and customers that was shared in the email, the team noted that “all manufacturing facilities in North America are in task-force mode to maintain the continuity of our operations. The supply chain continues to be relatively stable, allowing us to continue to deliver trucks on time. So far this month, our on-time delivery rate continues to be at a very high level.”

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