Daniel C. Ustian, Navistar president and chief executive officer, said the company is pleased to have come up with a plan to keep its Chatham, Ont., heavy truck assembly plant open.
International Truck and Engine Corp. announced Thursday it will keep its Ontario plant open and maintain a production schedule of heavy trucks as the result of a long-term investment by the company, Government of Canada and the Province of Ontario.
The government participation is part of the company's 10-year, $189-million program that includes investments in technology, advanced skills training, and state-of-the-art equipment to modernize and update the plant. Major elements include two new research and development centers to be established in partnership with one or more Ontario universities.
The Government of Canada will contribute up to $23 million under its Technology Partnerships Canada program and various training programs. The Province of Ontario will contribute up to $22 million toward the total investment as part of its $438-million Large Scale Strategic Investment Initiative announced in February.
Ustian noted that the impact of the decision to keep the plant would result in an adjustment to the company's existing restructuring charge recorded in the fourth quarter of 2002.
He added that the company has also accelerated the sign-up period for an early retirement window program offered to certain eligible, long-service United Auto Workers union (UAW) represented employees. The purpose of the window program is to enable the company to address the changing staffing needs of the business. The expected dates for retirement under the program have not been changed, but the earlier sign-up period requires the company to account for the program in the fourth quarter of 2003.
According to Ustian, Navistar is in the process of quantifying the impact of these decisions and will disclose them with the release of its fourth quarter earnings. Neither of these decisions however is expected to impact the company's earning guidance issued in the third quarter earnings release on Aug. 15, 2003.
"These actions allow us to substantially complete our initial transformation strategy that we began in 1997," said Robert C. Lannert, vice chairman and chief financial officer.
Additional information is available at www.internationaldelivers.com>/a>.
International Truck and Engine Corp. announced Thursday it will keep its Ontario plant open and maintain a production schedule of heavy trucks as the result of a long-term investment by the company, Government of Canada and the Province of Ontario.
The government participation is part of the company's 10-year, $189-million program that includes investments in technology, advanced skills training, and state-of-the-art equipment to modernize and update the plant. Major elements include two new research and development centers to be established in partnership with one or more Ontario universities.
The Government of Canada will contribute up to $23 million under its Technology Partnerships Canada program and various training programs. The Province of Ontario will contribute up to $22 million toward the total investment as part of its $438-million Large Scale Strategic Investment Initiative announced in February.
Ustian noted that the impact of the decision to keep the plant would result in an adjustment to the company's existing restructuring charge recorded in the fourth quarter of 2002.
He added that the company has also accelerated the sign-up period for an early retirement window program offered to certain eligible, long-service United Auto Workers union (UAW) represented employees. The purpose of the window program is to enable the company to address the changing staffing needs of the business. The expected dates for retirement under the program have not been changed, but the earlier sign-up period requires the company to account for the program in the fourth quarter of 2003.
According to Ustian, Navistar is in the process of quantifying the impact of these decisions and will disclose them with the release of its fourth quarter earnings. Neither of these decisions however is expected to impact the company's earning guidance issued in the third quarter earnings release on Aug. 15, 2003.
"These actions allow us to substantially complete our initial transformation strategy that we began in 1997," said Robert C. Lannert, vice chairman and chief financial officer.
Additional information is available at www.internationaldelivers.com>/a>.
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