Wheel manufacturer Superior Industries International, Inc. is eliminating 29 percent of its American workforce by cutting 755 jobs due to reduced demand for sport utility vehicles and light trucks. The Van Nuys, Calif.-based firm supplies aluminum wheels to Ford, General Motors, Chrysler, Audi, BMW, Fiat, Jaguar, Land Rover, Mazda, Mercedes Benz, Mitsubishi, Nissan, Seat, Skoda, Subaru, Suzuki, Toyota, Volkswagen and Volvo. Superior is to shutter its Pittsburg, Kan. plant in December, resulting in the dismissal of about 600 workers. The company has also cancelled 90 open positions and will layoff an additional 65 employees. “Superior’s goal is to prosper, not just survive, as we work through one of the most challenging periods in the history of our industry,” says Steven Borick, chairman, CEO and president. “The essential actions (being undertaken) will enable us to maintain our strong leadership position now and well into the future, and to maintain our financial flexibility by protecting our cash-rich, debt-free balance sheet,” he notes. “We believe the move towards more fuel efficient vehicles is a permanent shift, not merely a temporary phenomenon. The change in the light truck/passenger car mix requires adjustments to Superior’s manufacturing architecture,” Borick says. “The plant closure is necessary to eliminate excess wheel production capacity, enhance our overall efficiency, and move production to other manufacturing plants to improve our global capacity utilization,” he explains. “We are acutely sensitive to the impact of these difficult but necessary actions on our employees, and we are taking a variety of steps to help ease the transition.” Severance pay and other costs related to the plant closure are expected to reach $1.8 million over the next six months. The equipment in place at the Pittsburg factory is valued at about $13.2 million. The expenses associated with the other planned employee reductions are estimated to be $296,000. For more information, visit www.supind.com. |
