- NFI Group (NFI) has completed the first year of NFI Forward, the company’s initiative to reduce operational costs across the board
- The “transformational” initiative was launched in July 2020 as a response to the impacts of COVID-19 faced by the company
- This year’s initiatives alone resulted in $28.6 million in cumulative savings
- NFI Group is a Canadian automobile manufacturer
- NFI Group Inc. (NFI) is up 4.19 per cent, trading at $27.87 per share
NFI Group (NFI) has completed the first year of NFI Forward, the company’s initiative to reduce operational costs across the board.
The “transformational” initiative was launched in July 2020 as a response to the impacts of COVID-19 faced by the company.
With NFI Forward, the company plans to save approximately $67 million in annual overhead and selling general and administrative (SG&A) expenses by 2023, compared to 2019 levels.
After the first year, the company has succeeded in streamlining overhead costs in the following areas:
- Combining administrative services such as human resources, finance, and treasury into an integrated service model;
- Consolidating New Flyer and MCI, two of the company’s brands, into a single North American operating business;
- Reducing the number of parts stocking locations in North America from 22 to seven;
- Ending chassis manufacturing at the ADL Guildford facility; and
- Integrating all Winnipeg-based fibreglass facilities into one location.
These initiatives alone resulted in $28.6 million in cumulative savings.
The company continues to consolidate its programs and streamline operations to move the NFI Forward initiative to its goal.
NFI announced today that it will be closing all of its Alexander Dennis Inc. (ADI) manufacturing locations. The company plans to integrate all manufacturing of ADL double deck buses in North America into existing NFI locations.
Paul Soubry, president and CEO of NFI, commented on the recent announcement.
“As it is never easy to close locations and impact individuals’ careers, this important decision was not taken lightly,” he said. “This integration, however, continues us on the necessary path for NFI as we execute our plan of transforming our organization into a more cost efficient, integrated operating business.”
NFI will continue to offer ADL’s industry leading double-deck products in North America, the company confirmed in its press release.
NFI Group is a Canadian automobile manufacturer.
NFI Group Inc. (NFI) is up 4.19 per cent, trading at $27.87 per share as of 11:45 pm ET.