SAGINAW, MI — TRW Automotive is closing its Saginaw plant next
year after losing the business of General Motors Co. and failing to win
other business, a company spokesman said Tuesday, Dec. 17.
Company officials on Tuesday announced plans to close the company's Saginaw braking facility in mid-February.
The facility has been "unsuccessful in gaining new business awards"
and has been notified by General Motors Co. that it "intends to
resource production to alternative suppliers," officials said in a news
release.
The Saginaw plant, located at 2328 E. Genesee, has about 600
employees involved in the manufacture of rotors and knuckles and the
assembly of corner modules, according to the release.
"It is anticipated that employees will be impacted
February 16, 2014, and assistance and support will be provided in
helping prepare them for future employment at that time, subject to
discussions with the hourly workers’ union," the release states.
John Wilkerson, senior communications manager for TRW, said details
of the announcement were released Tuesday to employees and
local officials.
"Employees were notified in face-to-face
meetings today," he told The Saginaw News in an email. "There were
multiple meetings and they were given the opportunity to ask questions."
When
asked whether TRW had tried to come to an agreement with GM, and
whether they serve any other automakers, Wilkerson replied, "We tried to
win the replacement business or obtain other business from GM and
others but were unsuccessful."
Formerly a Delphi Chassis plant, TRW Saginaw supplies parts for GM
vehicles, including the Chevrolet Camaro, Buick Lacrosse, Chevrolet
Equinox and GMC Terrain.
TRW
as a company makes brake components, steering and suspension, airbags,
seatbelts and steering wheels for more than 40 vehicle manufacturers.
The company has more than 60,000 employees worldwide and posted $14.4
billion in sales in 2010.
Media reports show TRW was in a contract dispute with GM over pricing of brake components.
UAW Local 467 officials representing employees at the plant weren't immediately available for comment.
Saginaw Mayor Dennis Browning said losing such a major
employer and hundreds of jobs in the city could have a significant impact on the
local economy and city government as well.
"When you're talking about that many jobs, that's a lot of
money," Browning said. "I hate to hear news like that."
He pointed out that a string of positive development news
has come to Saginaw in recent months, though the mayor admitted it is deflating
to hear of such a large closing.
"We've seen some economic growth," Browning said. "We're
excited about the new apartments downtown coming in. We're excited about the
CMU venture. It sounds like they're laying off a very large number of
employees. That has a very big economic impact on a city our size."
He said many workers no longer working within the city
will result in a significant reduction in revenue collected through Saginaw's
income tax.
"You put that many people out of work in the city, that's a
lot of revenue," Browning said. "If that is the case, we're going to have to
adjust our budget."
The mayor said he hopes there will be more good economic
news for Saginaw soon.
"As much as we like to celebrate new ventures, we need to
accept the possibility that some other ventures may not continue," Browning
said. "We have to take the good with the bad."
Saginaw News reporter Mark Tower contributed to this report.
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