Autos & Transportation

Truck maker Navistar says Omicron variant is likely to slow supply chain recovery

1 minute read

Trucks are parked at a yard of the manufacturing plant of International brand commercial trucks, owned by Navistar, in Escobedo, on the outskirts of Monterrey, Mexico, June 29, 2017. REUTERS/Daniel Becerril

Dec 1 (Reuters) - U.S. truck maker Navistar International Corp, backed by Volkswagen (VOWG_p.DE), said on Wednesday the Omicron variant of the coronavirus would likely slow the recovery in the global supply chain.

A shortage of semiconductor chips, used to operate everything from driver aids to infotainment systems, have forced major automakers to slash their productions and in some cases build vehicles without certain features.

Navistar adjusted its production schedule for next year to align with suppliers' expected abilities to deliver, it told Reuters in an emailed statement.

"We are remaining flexible and can potentially increase production rates if the supply base can outperform the current forecast," said Paul Martin, the vice president of finance and revenue in Navistar.

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Reporting by Nathan Gomes in Bengaluru; Editing by Amy Caren Daniel

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