Navistar buys automatic transmissions for its medium duty trucks and school buses from Allison Transmission. With the booming demand for trucks, Allison can't keep up with orders for its automatic transmissions.
In less than two weeks, the company will need 700 fewer workers. About 160 are expected to retire, resulting in layoffs of more than 550. More than 5,000 people currently work at the assembly and body plants in Springfield.
Company officials don't expect the supply problem to improve until September. However, they expect 1999 production levels to remain on target. Other assembly plants will make up for any shortfall at Springfield.