Idling of workers at Toledo Jeep to ripple to thousands of others
02.07.2008 10:04
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- Source: toledoblade.com
In economic development circles, automotive factory jobs are measured not by the number of vehicles they produce, but in the number of additional jobs that result from their creation. But just as auto jobs create auto-parts-manufacturing jobs and restaurant jobs and others, so to do those secondary jobs suffer when auto workers fall on hard times. And there have been few harder times in the automotive industry than the last six months, when sales across the domestic automakers have plummeted as quickly as gas prices have risen. Last week, Chrysler LLC announced that it was shutting down the factory making Jeep Liberty and Dodge Nitro through Aug. 25 at the Toledo Jeep Assembly complex. The move idled over 2,200 Chrysler workers and will affect thousands of others in local parts manufacturing, analysts said. "It's not going to be pretty," said Joseph Phillippi, an industry analyst with AutoTrends Consulting in Short Hills, N.J. Production cuts at Chrysler, General Motors Corp., and Ford Motor Co. will have a "nasty effect" on the automotive supplier industry, Mr. Phillippi said. "The players like Dana [Holding Corp.], Borg-Warner [Inc.], Magna [International Inc.], it's going to be a pretty rough second half of the year," Mr. Phillippi said. "It's not just the parts makers; it's the guys that supply services, tooling, and all sorts of components that go into the assembly plant that will hurt." Consider recent announcements: •Toledo's Dana said this week that it will temporarily lay off 95 workers at its Matzinger Road facility where it assembles axle modules and driveshafts for the Liberty and Nitro. •About 150 workers at Woodbridge Corp. in Fremont will lose their jobs this month, according to a state notice that plant manager M. Jared Young filed. The company makes seating foam products for the auto industry. •About 175 workers at the Kongsberg Driveline Systems plant in Van Wert, Ohio, will be permanently laid off this month after their company relocated shifter-cable and extrusion work. •Continental Structural Plastics Inc. has begun shutting down its plant in North Baltimore, Ohio. Approximately 270 employees will be permanently laid off in phases between now and the end of the year. •Workers at GM's Toledo Powertrain plant will be laid off one additional week this month, taking a three-week summer shutdown during the traditional model changeover instead of the normal two weeks. Ray Wood, president of United Auto Workers Local 14, said that no other layoffs are planned right now but said the situation could change. "It's pretty bad," said Lloyd Mahaffey, Ohio UAW director. "They say every auto assembly job means 8 to 10 parts jobs, depending on the complexity of the vehicle," Mr. Mahaffey said, ticking off assembly shutdowns by Detroit Three automakers around Ohio and the impact on nearby suppliers. He said the two-month shutdown of the Liberty and Nitro line will hurt workers at companies like Johnson Controls Inc. and Oakley Industries, which both have facilities in Northwood. "Everybody that does anything for the Liberty [and Nitro] in northwest Ohio will be hurt by it because they won't need the parts," said Mr. Mahaffey. Contact Larry P. Vellequette at:
lvellequette@theblade.com
or 419-724-6091.
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