Bus maker NFI to close North Dakota plant to cut costs

The bus maker will close a plant in North Dakota as it tries to cut costs.

The Motor Coach Industries plant in Pembina, North Dakota, will be closing in the fourth quarter of this year.

The Pembina facility will be closing following a detailed review of our manufacturing footprint, combined with the planned cessation of a legacy motorcoach vehicle product, and prior investments in expanded production and workforce development at our Minnesota facilities.

We will do our best to redeploy or assist them in finding alternative employment when possible, because it is never easy to close locations and impact the lives and careers of our people.

The goal of the second phase is to cut costs by US$67 million by the end of the year.

The revenue forecast was cut for the second time in seven months due to a global shortage of chips.

The company said that the shortage meant a drop in deliveries as vehicles sat in storage waiting to be completed.

It expected production to be cut at some plants, but it was trying to find other suppliers.

The company cut its guidance for adjusted earnings before interest, taxes, depreciation and amortization to between US$15 million and US$45 million because of supply chain challenges.

The previous outlook for adjusted Ebitda was between US$100 million and US$130 million.

Electric and hybrid buses and coaches, along with vehicles that run on natural gas and clean diesel, are made by NFI.