just-auto.com

US: Federal-Mogul to further streamline operations

By just-auto.com editorial team | 17 September 2008

Federal-Mogul has announced a restructuring plan designed to improve operating performance and respond to increasingly challenging conditions in the global automotive market.

The plan, when combined with other workforce adjustments, is expected to reduce the company's global workforce by approximately 4,000 positions or eight percent. The planned actions are expected to occur as a result of several initiatives designed to streamline business processes, consolidate or close selected locations, and reduce general and administrative staffing.

The company said that it is not disclosing the specific sites at this time, pending further evaluation and consultations with appropriate parties. The restructuring initiatives will begin during September 2008 and continue into 2009 with several phases of implementation. Preliminary cost estimates of the restructuring program are in the range of US$60m-US$80m through the end of 2009.

"We are taking actions in response to a downturn in regional markets and global industry outlook. We recognize this is a difficult decision, yet these measures are required to prepare the company for the increasingly challenging automotive environment. The efficiencies gained as a result of these initiatives will strengthen Federal-Mogul's competitive position and help assure the company's future as we continue to implement our sustainable global profitable growth strategy," said Jose Maria Alapont, Federal-Mogul President and CEO.