International closing Chatham plant

March 28, 2003
Saying that the heavy truck plant’s closure was a necessary step to address competitive market conditions, International Truck and Engine Corp. said today that it would close its Chatham, Ontario assembly plant July 18. Production of International® 9000i Series Class 8 trucks will be transitioned from Chatham to the company's Escobedo, Mexico assembly plant. "We understand that this is not an easy
Saying that the heavy truck plant’s closure was a necessary step to address competitive market conditions, International Truck and Engine Corp. said today that it would close its Chatham, Ontario assembly plant July 18.

Production of International® 9000i Series Class 8 trucks will be transitioned from Chatham to the company's Escobedo, Mexico assembly plant.

"We understand that this is not an easy time for anyone affected by this announcement,” said Steve Keate, president of the company's truck group. “Even though we’ve been talking about this with employees for months, we realize that announcing a date signals the finality of closure."

Keate stated that this action, along with others, better positions International to profitably serve its heavy truck customers and contributes to the company's goal of profitability over the business cycle.

In December 2001, International announced that it needed to find additional cost reductions to make the plant competitive and followed up with a formal “consideration to close” letter on April 5, 2002.

In July 2002, the company reached a two-year contract with the Canadian Auto Workers union, which said the company would not close the plant before June 1, 2003. Unable to achieve necessary cost savings, International announced its plans to close the Chatham plant on October 17, 2002.

The Chatham plant is currently operating on one shift with approximately 900 employees. In addition to active employees, there are approximately 1,300 union employees on layoff status.

Sponsored Recommendations

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

How Electric Vehicles Help You Prolong the Life of Your Fleet

Before adopting electric vehicles for commercial/government fleets, prioritize cost inquiries. Maintenance is essential; understand the upkeep of EV fleets. Here’s what you need...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!