"We plan for the fact that our heavy truck business is cyclical," the company said in response to media reports regarding its 2001 forecast. "We can control how we respond and are confident that our operations will continue to improve next year."
According to Reuters, Navistar Chairman and CEO John Horne last week said that he "wouldn't be surprised" if industry demand was off 20% in 2001-- with heavy trucks hardest hit. But Navistar since issued a statement emphasizing that its forecast for fiscal 2001 isn't yet formalized. In May, Navistar forecast fiscal 2000 U.S. and Canada truck industry volume at 405,000 units, down from 465,000 in fiscal 1999. The company said that hasn't changed.
Horne said the market downturn will not affect Navistar's launch of its Next Generation Vehicle, scheduled to debut with new medium duty models in March 2001.