ArvinMeritor considers cutting 800 jobs at Franklin plant

Associated Press ^ | 09-20-03

[Brian S]

FRANKLIN, Ind. (AP) — Auto parts maker ArvinMeritor Inc. has made a preliminary decision to close its exhaust systems plant in Franklin, a move that could eliminate more than 800 jobs, the Daily Journal reported.

In a story for its Saturday editions, the newspaper quoted ArvinMeritor spokeswoman Colleen Hanley as saying the company would notify an employee union of its final decision by Wednesday.

Harry Alfrey, of the Great Lakes Regional Industrial Council, a business agent for the union, said, ‘‘The choice is between keeping it open and closing it, and that decision will be made the 24th.’’

ArvinMeritor, a major presence since the 1930s in the town 20 miles south of Indianapolis, is Johnson County’s largest industrial employer.

Executives from Troy, Mich.-based ArvinMeritor met briefly with a union-negotiating committee Thursday in Franklin to advise them of the pending decision.

A local leader with Carpenters & Joiners Local 2993, which represents the plant’s hourly workers, described the shutdown as imminent.

‘‘It’s pretty much a done deal,’’ the union leader told the Daily Journal, which did not identify him. ‘‘We asked them if there was anything we could say or do to keep it open, and they said no.’’

The man, who attended Thursday’s meeting, said ArvinMeritor plans a phased closure to be completed by September 2004, when the current contract for hourly workers expires.

Rumors of a closure at the Franklin plant have lingered for years. Some employees, however, were recently encouraged when the company denied the rumors and instead announced that it was moving two small production lines from the plant.

Mayor Norman Blankenship said Friday he had not been informed specifically of the company’s plans, but had been asked to meet with local plant managers Wednesday.

‘‘It’s a symbol of something that was heretofore considered to be an immovable rock,’’ he said of the plant.

In July, ArvinMeritor reported sales of $5.8 billion for the first nine months of fiscal 2003, up 13 percent from the previous year. Net income for those nine months, however, was $103 million, down from $108 million the previous year.

Executives of the company, which employs 32,000 people in 27 countries, said cost cutting would continue amid continued decreasing sales of passenger and commercial vehicles. ArvinMeritor also has made news this summer with its attempt to acquire Toledo, Ohio-based competitor Dana Corp., a larger automotive supplier.

[Iscool]

Kind of a small Return on Sales figure, but then 103 million bucks is far better than a sharp stick in the eye...

But they were doing well enough to want to buy Dana Corp...Interesting..

[lelio]

How long till we see the press release about them opening a plant in China or India?

[warchild9]

Actually, about 40-50% of all U.S. spare auto parts are made in China. The unions are keeping that from becoming 100%.
The union-haters on FR will deny these statistics to the last, but their truth makes the shrilling irrelevant.

[Iscool]

That's like the Sears & Roebuck auto/home insurance co...Their name escapes me for the moment...Not only are Sears' famous Craftsman tools made in China, but when you insure with them, you are agreeing to use only made in China body parts if you are in a collision...It's claimed that the body parts are made from thinner steel than the original equipment parts...As if that's possible...

[Graybeard58]

"Actually, about 40-50% of all U.S. spare auto parts are made in China. The unions are keeping that from becoming 100%.
The union-haters on FR will deny these statistics to the last, but their truth makes the shrilling irrelevant".

Nice to hear positive comments about unions for a change.
When I comment in reply to articles about unions the name calling starts. usually calling me an idiot, moron union plant, etc.