Mexico's Consorcio G. Grupo Dina says a request by Western Star to delay delivery of some 140 trucks will force it to "significantly" cut production at its Hidalgo plant.
Dina Camiones has been building an estimated eight trucks a day under a 10-year contract that called for up to 9,000 trucks in the first three years. Reuters news service reports that 640 trucks have been delivered and paid for. The trucks carry the Western Star name and are sold in the U.S. and Mexico.
"The process of integrating Dina's Class 7 units into Western Star's existing product line, including the associated training and marketing initiatives, has proven to be more complex and time-consuming than originally anticipated," Dina said in a press release.
The company said it will adjust shifts and workdays so that unionized workers will receive 62% of their normal salaries plus benefits.
"Although we are disappointed by the near-term reduced demand for our trucks, we continue to be excited about the long-term prospects presented by our Western Star alliance," said Adolfo Hegewisch, executive director of sales and operations.
Grupo Dina is an international consortium with industrial operations in Mexico and Argentina.