Navistar Closing Garland Truck Plant, 900 Jobs Eliminated
Navistar International Corp. has announced plans to close its Dallas-area truck plant and eliminate the 900 jobs.
Illinois-based Navistar says its Garland facility will cease operations by the first half of 2013.
The company on Tuesday cited the planned closure as part of efforts to save money and optimize its manufacturing operations. Navistar anticipates annual cost savings of up to $35 million with the closure.
President Troy Clarke says Navistar has too much manufacturing capacity in North America.
Navistar and its affiliates make International-brand trucks, diesel engines, buses and recreational vehicles.
NBC 5 Dallas-Fort Worth
Garland is the next town over from Rowlett and we share a lot of commonality, the loss of 900 jobs from this immediate area is going to have a substantial impact on the local economy I am sure.
I don’t blame Navistar, they are a business and they are IN business to make money, that is first and foremost, and as terrible as it is to say, Navistar bears no responsibility to keep ANY plant in operation in ANY location, they are not obligated to give anyone a job. That is a fact of business.
Now, here is a fact that can’t be disputed; the U.S. economy is NOT where it needs to be, it is NOT as strong as the Obama administration would like you to believe and it will not BE as strong as it was a few years ago, not for quite some time actually.
I don’t want to sound negative but trucks and the trucking industry is something I have a bit of experience with and have an idea of how it runs and what it takes to be successful.
My wife and I spent several years as Owner/Operators with a major Van Line and we were quite successful too, but a few years ago things began to change in the trucking industry, and I have to say, it was NOT the fault of Barack Obama, it was before his time.
The cost of everything went UP, dramatically! The price of trucks, oil, diesel fuel, tires, repairs, ALL of it, the prices went up, everything that is except the wages drivers were paid and the compensation Owner/Operators received.
We were hauling the same freight for less money and we were told it was *the economy* and that we were just going to have to suck it up, tighten our belts, make do, get by with less and basically, just live with it.
When we began running for the Van Line you could buy a relatively well equipped rig for $80-$90K, the last truck we bought was priced at $141K delivered and rigged out, ready to go to work. That was in back in 2000 and not too long after that I had to get out of the business and take full retirement due to serious and irreparable health issues.
The costs associated with trucking have continued to rise over the last 10 years that have passed since I’ve been retired, but as said, the compensation to the drivers and Owners hasn’t done much, if anything, in the way of improving.
If truckers and trucking companies can’t operate at a profit they can’t continue to stay in business, it would be foolish to expect them to, and as such, if truckers can’t make a living truck manufacturers can’t sell the trucks they build.
Now I am going to tell you something you may not have realized; if you have it, a truck brought it to you at some point in the transportation chain. It’s an old cliche in the trucking business but it’s the truth: without trucks America stops!
Once again it all comes down to the economy, so, ask yourself this; who do YOU believe will have the most success getting the American economy fired back up and getting the American people back to work and on the job?
Vote like your LIFE depends on it … because it does!
As usual, because of the economy “We The People” take it in the SHORTS! Yes Navistar maintains the right to hire or not hire. But let’s looky at it realistically, if the ECONOMY is not in the tank, and we are hitting on all cylinders, those 900 jobs stay in place and those poor souls don’t lose their jobs.
Obama. No doubt was handed a bad deal, but as you well know, Obama made it 10x’s worse. That’s my view, either way there will be 900 people marking their ballot “ROMNEY”!
Without a doubt NOTHING has even remotely improved under Obama but the woes of the trucking business started really showing up about 10 years ago…
I don’t know if Romney can turn it all around but in MY opinion there is one certainty, Obama can’t and wouldn’t even if he could, it’s not a part of his *grand scheme*…
First, I find it disturbing that NaviStar found Texas a place where they close a plant. Texas is pretty much THE business-friendly state in the Union.
That said, I understand the plight of the Owner-Operator. The basic price of a tractor, plus insurance, plus maintenance, plus fuel, plus the varied and dissimilar traffic rules per state, plus the varied and dissimilar regulations on trucking, plus federal regulations, plus licensing and registration — it’s a huge problem that the O-O has to navigate in order to make any kind of a profit per mile.
I take it one step further:
The more you endanger DIESEL as an engine and as a fuel, the more you endanger the entire paradigm of transportation.
There is NO other mode of transportation (diesel) that is so important to the viable global transportation system.
First: (in the hierarchical order of greatest bulk importance) commercial SHIPS run on diesel/electric systems. LOCOMOTIVES run on diesel/electric systems. Major TRUCKS run on diesel. LTL trucks also run on diesel.
Owner-Operators are small business owners.
And WHY are, in general, businesses not flooding the market with new hiring and expansion and fixed asset purchases?
Because there is NOTHING on which they can DEPEND in terms of their future.
Thank you, Mr Obama.
You incredible LOSER.
BZ
I can’t disagree with so much as one word, but I will insert this addendum; trucking concerns go broke on a regular basis, railroad concerns get massive federal support (bailouts)…
The rails can’t run without trucks… Freight has got to get to the trains, and in turn, from trains to distribution sources… You can’t take a train to most retail stores…
Just sayin’…
You know, you’re quite correct. The assumption is:
Trucks run on federally-constructed roadways.
That, on its base, is foundationally specious. Because, of course, due to the rail aspect you so properly point out.
Which is why rails can’t be the End-All and Be-All that the federal and local governments want.
You simply cannot build as many rails as you can asphalt roadways.
You cannot get that DETAILED in terms of rail route.
BZ
Before it is over there will be no diesel trucks that will be affordable to run. All the modifications to get better mileage put Mac trucks out of business. Maintenance will be prohibitive.
When I was growing up DIESEL fuel was the cheapest on the market. Since 2002 it has been the most expensive. Why? It makes no sense.
Everything in this industry seems that people are trying to pull as much profit out of it without thinking ahead or worrying about the common Joe.
Under Obama it has gotten worse. But this is one time I can actually say that Obama didn’t create this mess.
Diesel was cheaper because it is less expensive to refine than is gasoline, it still is, and like you, I don’t understand why diesel is so much more expensive..
It can take as much as $1,200.00 to fill up a diesel rig, given 2 tanks at 150 gallons each… No one can afford that for very long, and if they do, it’s because the costs are immediately passed down the line to us, the consumer..
On “Deadliest Catch,” it has taken up to half a MILLION dollars to fill up Alaskan crab fishing vessels with diesel — particularly large crabbers like Keith’s WIZARD.
BZ