Continental Automotive Factory Closes, Cutting 1,000 Jobs

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Continental Automotive Systems (Frankfurt, Germany) is closing the company's plant in Huntsville, Alabama. The facility specializes in powertrain products, such as electronic systems, radios and navigation equipment. The factory currently employs 1,000 salaried and hourly employees, including 300 recently laid-off workers.

Continental's automotive business has been negatively impacted by adverse market conditions in the Automotive Industry. The Huntsville factory has the highest manufacturing cost of any Continental Automotive plant in North America and was unsuccessful in reducing these costs. The company invited the United Auto Workers to negotiate a plan to reduce labor costs at the plant; unfortunately, union members voted overwhelmingly to reject the company's request to negotiate labor cost reductions. The collapse of the North American automotive market has compelled the company to take aggressive measures to respond to adverse conditions, resulting in the closure of the Huntsville facility by December 31, 2010.

Closing procedures for the plant will be implemented in several phases. The product lines and development operations will be relocated to Seguin, Texas; Cuautla, Mexico; and other Continental facilities, coordinated by General Manager Richard Payne.

Severance and outplacement assistance will be provided to salaried employees affected by the closure; and the U.S. Department of Labor will take aggressive steps to help displaced workers gain access to training and placement programs.

View Plant Profile - 1513644
View Project Report - 300018159

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.