CHICAGO, June 7 -- Navistar International Corporation (NYSE: NAV), producer of International® brand trucks, buses and engines, today reported that it is still on plan despite a supply shortage that will result in a reduction in production levels at its assembly plant in Springfield, Ohio. James L. Simonton, vice president, purchasing and supplier development said that this supplier shortage had been anticipated for several months as strong demand for International brand trucks coupled with record industry demand continues to outpace the capacity of Navistar's supplier.
"Our forecast for 1999 planned for this," Simonton said, "While some of our customers have switched to manual transmissions, many prefer to wait for an automatic. We anticipate that supply problems will ease in the fall."
Don DeFosset, Navistar executive vice president and president of the truck group, said that overall demand for trucks and buses continues strong and that production increases at other assembly plants will make up for any shortfall at Springfield.
"As the result of our record output for the first seven months of the year, the Springfield assembly plant will produce more trucks and buses in fiscal 1999 year than originally forecast," DeFosset said.
Navistar International Corporation, with world headquarters in Chicago, and 1998 annual sales of $7.9 billion, manufactures and markets heavy, medium, and severe service trucks and school buses and mid-range diesel engines in North America, Latin America and selected export markets. The company is a leading supplier of mid-range diesel engines in the 160 to 300 horsepower range.