Impact of Chrysler job cuts unclear

Saturday, November 3, 2007

A spokesman for the automotive parts company that employs 1,000 Greencastle workers said he does not know whether job cuts at Chrysler will force similar downsizing in Putnam County.

"We're working night and day to assess what is going to happen," said International Automotive Components spokesman David Ladd. "We're certainly going to have to understand that pretty soon, though."

On Thursday, Chrysler announced it would cut as many as 12,000 jobs next year in an attempt to rebound from lower-than-expected sales and declining demand for its vehicles.

The Greencastle IAC plant manufactures doors and interior paneling for several automakers, though Chrysler is its biggest customer, Ladd said.

The Belvidere, Ill., Chrysler plant, which manufactures the Dodge Caliber, Jeep Compass and Jeep Patriot, will cut a shift in order to reduce production and wages. Greencastle IAC is a supplier for that plant.

Ladd would not give details about which plants have contracts for parts made in Greencastle or what percentage of Greencastle IAC's production goes to Chrysler.

However, auto parts suppliers are sensitive to changes at the plants they supply.

When the Belvidere plant closed for two weeks last month, Greencastle IAC was forced to temporarily lay off 200 employees to make up for the reduced demand for its products.

Ladd, though, said it's possible that the shakeup at Chrysler will allow IAC Greencastle to shift its production to supply parts for other plants.

Dearborn, Mich.-based IAC North America has 39 plants that employ 1,700 workers across the continent.

The Associated Press contributed to this report.

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  • I hope things work out and people still have a job.

    -- Posted by ishlynne on Tue, Dec 9, 2008, at 12:51 PM
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