Auto-parts supplier TRW is shedding around 1,000 staff from a division it is eliminating in the first quarter of 2001, the Financial reported.
The Cleveland-based group, which also supplies parts to the aerospace and information systems sectors, said the downturn in the auto industry had led to additional restructuring measures that resulted in the job cuts.
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These latest redundancies, as well as other actions, would lead to an after-tax charge of about $US40m, mainly in cash, although it expects to recover this by the end of the year. The disclosure was made earlier this month in a Securities and Exchange Commission filing.
TRW is basing its decisions on projections that car and light truck production will decline by around 10 per cent in North America this year in comparison to last year, and by about two per cent in Europe.
TRW thinks that growth in central and eastern Europe as well as in Asia-Pacific will be around two per cent, and the company suggests that commercial truck production could fall by over 20 per cent in North America this year.
The FT says that this is the latest in a series of layoffs in the auto-parts suppliers’ sector which is facing a decline in demand and pricing pressures as vehicle manufacturers seek to reduce costs.
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By GlobalDataTo view related research reports, please follow the links below:- World automotive components: Market prospects to 2005 |
