Accuride's top boss quits after wheel maker cuts 11 percent of workers

John R. Murphy has resigned as president and CEO of wheel manufacturer Accuride Corp. The company is laying-off 11 percent of its workforce, and amid the dismissals a new aftermarket division is being created.

Accuride is eliminating 392 positions; 159 salaried employees, amounting to an 18 percent reduction, and 233 hourly workers, a 9 percent decrease.

“We are extremely mindful of the impact that these difficult but necessary actions have on our employees,” says company chairman Terrence J. Keating. “However, given the current weak build rates and challenging macroeconomic environment, these initial restructuring steps are necessary to allow us to effectively compete in the markets we serve.”

The cuts are expected to save the company an estimated $6 million this year and generate annual savings of some $27.5 million going forward.

“In addition to these initiatives, we believe there are additional opportunities that merit further analysis and we will continue to press to reduce our costs, improve asset utilization and accelerate organic growth,” says William “Bill” M. Lasky, interim president and CEO in the wake of Murphy’s hurried departure.

Tony Pape has been tapped as vice president and general manager of the new aftermarket division, “creating senior executive level focus and accountability for this important market segment.” Phil Stolz has been named vice president of truck original equipment and corporate marketing with an expanded focus on developing additional sales opportunities.

“We look to Tony and Phil to take a dynamic approach in significantly strengthening our customer relationships by servicing both the aftermarket and OE service in a centralized fashion,” says Rick Schomer, Accuride’s senior vice president of sales and marketing. “To support these initiatives, we will be consolidating our existing warehouses to reduce freight and product handling costs and significantly improve our customer service offering for full mixed product truckloads to our aftermarket customers.”

“The depth of initiatives…will result in a leaner organization that is better positioned to deliver increased value to our shareholders while improving our competitiveness and customer service,” Lasky notes. “These actions will better position us to be a more agile competitor in the years ahead.”

Lasky was an independent director at the company prior to taking the top spot on an interim basis. He will remain on the board.

“Given Bill's experience from his previous executive assignments at JLG, Dana, and Stoneridge, in conjunction with his work as an Accuride board member, we are confident that he will drive initiatives to improve Accuride’s financial performance while maintaining uninterrupted customer service,” according to Keating.

“Working with all of Accuride’s employees, I plan to have an immediate impact on the company’s direction, and will work with the board to bring permanent leadership to the company to continue these efforts,” Lasky says.

Among the company’s product brand names are Accuride, Gunite, Imperial, Bostrom, Fabco and Brillion. Its lines include commercial vehicle wheels, wheel-end components and assemblies, truck body and chassis parts, seating assemblies and other commercial vehicle components.

For more information, visit www.accuridecorp.com.