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Y! MyWebParts supplier lays off 100
Friday, July 04, 2008
International Automotive Components Group, LLC laid off approximately 100 hourly workers at its Sidney plant on Thursday July 3, citing an economic downturn in the auto industry.
The layoffs were a reaction to decreased production orders, especially from the Detroit Three, Julie Morey, senior manager of marketing and communications at IAC, said. Those companies, General Motors, Ford, and Chrysler make up the majority of IAC's North American customer base.
"It's the OEM (auto companies) volume reductions," she said.
The IAC plant in Sidney, which produces flooring and acoustic parts is the only Ohio plant to be affected by workforce cuts and no future cuts or plant closings are planned, Morey said. IAC has plants in Wauseon, Huron, and Freemont, Ohio. Prior to the layoffs the Sidney plant employed about 350 workers, according to Hoover's Inc., a source of corporate profiling information.
Both automakers and parts manufacturers have tried to shift the focus to smaller and more fuel efficient models as gas prices have increased and demand for trucks and SUVs has fallen.
" The downturn in the industry has had most suppliers scrambling to diversify the customer base," Morey said.
IAC is a private equity company majority-owned by Wilbur Ross. Lear Corp. and Franklin Mutual Partners also have stakes in the company. Nearly two years old, the firm is composed of the former global interiors divisions of Lear and Collins & Aikman, according to IAC's Web site. IAC's North American division listed a yearly revenue of $907.2 million, also according to Hoover's Inc.
U.S. job losses
U.S. Employers cut payrolls by 62,000 in June, the sixth straight month of nationwide job losses. The unemployment rate held steady at 5.5 percent. Here is a roundup of some of the details:
The latest snapshot of business conditions, released by the Labor Department on Thursday, July 3, showed heavy job losses in construction, manufacturing and financial services, along with cutbacks in retailing.
The jobless rate spiked to 5.5 percent in May. That marked the biggest over-the-month increase in two decades.
Payrolls dropped by 67,000 in April, versus the 28,000 previously reported. And, losses in May came to 62,000, rather than the 49,000 initially estimated.
So far this year, the economy has lost a total of 438,00 jobs.
