Delphi Automotive to reduce salaried workers
Business First of Buffalo
Delphi Automotive Systems Corp. will make more cuts in its global work force next year and take additional steps to improve its troubled $2.2 billion global thermal business, of which Delphi Harrison Thermal Systems in Lockport is the biggest operation.
The actions were disclosed today as the Troy, Mich.-based components supplier said it expects vehicle sales next year to fall to $25.2 billion from this year's anticipated $26.1 billion.
Few specifics were given, but Alan Dawes, Delphi chief financial officer, said 1,400 salaried positions will be eliminated from the worldwide work force. The job cuts are in addition to the 11,500 hourly positions the corporation said last March would be eliminated by March 2002.
The impact of next year's reductions on Lockport, which has a combined hourly/salaried work force of 4,900, is not immediately known, a local spokesman said.
The plant already is in the midst of shrinking its production work force. Early incentives and normal retirements have eliminated 305 positions since early November. As many as 450 more hourly workers could accept early retirement by March 31.
Regarding measures aimed at improving Delphi's $2.2 billion global thermal business, Dawes said, "We will need to further consolidate U.S. facilities during 2002 to address excess capacity and needed operating improvements."
He did not elaborate, but said the corporation this year has looked at ways to "develop a partnership to strengthen the long-term viability" of its thermal business.
Dawes and J.T. Battenberg III, chairman, CEO and president of Delphi, spoke in a conference call to industry analysts and news media representatives.
"In 2002," Dawes said, "we expect to implement initiatives to fix the thermal business, combined with potential expanded strategic partnerships. These actions will broaden the customer base and enhance access to technical resources and capital in a business focused exclusively on thermal products."
Lockport spokesman Douglas Hoy said Dawes's comments "underscore the need to continue restructuring our operation so it can be competitive and to continue to accelerate our improvement initiatives."
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