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Navistar Deal to Yield 700 Springfield Jobs

WARRENVILLE, IL – A tentative agreement reached between General Motors and Navistar International could mean 700 jobs for Springfield, Ill.

by Staff
December 26, 2007
2 min to read


WARRENVILLE, IL – A tentative agreement reached between General Motors and Navistar International could mean 700 jobs for Springfield, Ill., a county official said, according to the Columbus Journal.

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The accord calls for General Motors to sell Navistar its medium-duty truck business and move it to an assembly line approved by the United Auto Workers union. Springfield's 900-worker Navistar plant has space to accommodate another assembly line, said John Detrick, a Clark County commissioner.

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Detrick said 300 to 400 jobs could be added as vehicle orders increase. Wall Street analysts have valued the truck line deal at about $500 million, according to the Columbus Journal.

Roy Wiley, a spokesman for Warrenville, Ill.-based Navistar, said the company won't identify the location for the assembly work until the deal is formally approved. The company, he said, has been in talks with Ohio and Springfield officials about potential incentives for the project.

Wiley would not confirm the number of jobs that could be created from the GM-Navistar deal, saying the economy and market demand will ultimately determine the work force's size.

The office of U.S. Rep. Dave Hobson, R-Springfield, couldn't confirm the number of jobs either, except to the say that the total would be substantial, according to the Columbus Journal..

Springfield likely improved its position for new work when UAW Local 402 ratified a new contract with the truck maker in mid-December.

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"I think it's made Springfield more competitive," Wiley said. "And from day one that's what we've needed."

Navistar employs 16,000 workers nationwide. The Springfield plant is part of its International Truck and Engine Corp. subsidiary.

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