German transmission supplier Getrag will close its Ludwigsburg plant with the loss of 380 jobs, according to unions there.
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The company would not confirm the report ahead of works meetings planned for all four of its German plants. The Ludwigsburg plant is of emotional importance as it is where the company was founded.
A union representative told Automobilwoche the company must make cost savings of EUR27m.
Management has talking with unions since December about restructuring.
The company was hit last October by the cancellation of a Chrysler contract to supply 700,000 dual clutch gearboxes a year. Lawsuits are pending but the US facility being built specially to make the Chrysler transmissions had to file for Chapter 11 bankruptcy protection.
Unions had hoped that an agreement could be reached to save jobs by working reduced hours.
