Breaking News from Around the Industry
Navistar to lay off 1,100 workers Navistar International will eliminate 1,100 salaried and contract positions in expectation of lower demand...
Navistar to lay off 1,100 workers
Navistar International will eliminate 1,100 salaried and contract positions in expectation of lower demand for new trucks. The reduction represents approximately 15 percent of the company’s white-collar workers. Company officials blamed a sharp drop in truck orders for the cutbacks. “While truck shipments have been good, our order receipts and backlog, particularly for heavy trucks, are at their lowest levels since 1996,” said John Horne, Navistar’s president and chief executive, in an Aug. 15 press release. The layoffs are not expected to affect the school bus unit of Navistar, which manufactures International brand chassis, bodies and engines. Horne said a drop in third-quarter truck and bus shipments from second-quarter levels and a decline in orders were clear indications that the industry is at the beginning of a downturn brought on by an oversupply of late-model used trucks, escalating diesel fuel prices and higher interest rates. Navistar’s announcement came just a day after Freightliner Corp. in Portland, Ore., revealed its plan to lay off 3,745 North American employees. Freightliner, the industry leader in heavy truck manufacturing, said it expected truck sales to plunge by up to 25 percent this year.
Two-way radios snatched from 2 school districts
Thefts of two-way radios from school buses are back in the news. Two school districts — Clark County School District in Las Vegas, Nev., and Vista (Calif.) Unified School District — were victimized just before the start of school. Clark County reported the burglary of 320 two-way radios valued at $750 each, a net loss of $240,000 worth of equipment. According to school district police, the thieves broke into three bus yards between Friday and Monday, Aug. 11-13, and stole only the latest radio models. In Vista, 63 digital two-way radios were stolen over a weekend in late July. The thieves entered the buses through the emergency doors, which were left unlocked. The district has since added locks to the doors, according to Marta Munson, the district’s bus driver supervisor. Munson said the radio bandits were very organized and neat. “They didn’t vandalize the buses,” she said. “They just wanted the radios.” She added that the thieves collected the radios in large plastic trash buckets. One of the buckets, filled with 15 radios, was left behind. “They must have forgotten it or had to leave in a hurry,” Munson said. About this time last year, a rash of radio thefts took place in Southern California. Four school districts reported the loss of dozens of radios, possibly by the same group of criminals. In the wake of the thefts, some school districts have begun securing radio units with locking brackets and improving security around the bus yard. One district has installed magnetic brackets that allow drivers to check out and return radios to the dispatch office each day.
Collins reports record sales
Collins Industries reported record sales for the quarter ended July 31. Sales were up 10 percent compared to the same period in 1999, from $52.8 million to $58.2 million. Collins officials said the increase was principally due to higher ambulance and terminal truck sales and was partially offset by weaker bus sales. Net income for the quarter was $1.3 million compared to $1.9 million in 1999, a decline of 34 percent. Officials said the decrease was largely due to lower contributions from bus products, which have suffered from lower market demand, especially from national contractors.
Driver who backed over girl fined $100
A school bus driver who backed over and killed a 22-month-old child was fined $100 for failing to have a proper driving permit. The driver, Robin A. Diaz, was not charged criminally, but was found guilty of driving with an expired permit when she ran over the child on May 22. The child, Maggie Gunderson, ran behind the bus while her older brother was boarding the vehicle. Neither her mother nor Diaz saw her, and she was run over by the rear tire. The death was ruled an accident by the county coroner. Diaz’s employer, Jones School Bus Service, was fined $1,000 for allowing her to drive without a permit.
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