SOUTHFIELD, Mich. — Federal-Mogul today 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, which will take place as a result of several streamlining initiatives, will include consolidation or closure of selected locations, and reduction of general and administrative staffing.

The company is not disclosing the specific sites at this time, pending further evaluation and consultations with appropriate parties.

The company said restructuring initiatives will begin this month and will continue into 2009 with several phases of implementation. Preliminary cost estimates of the restructuring program are in the range of $60-$80 million through the end of 2009.

"We are taking actions in response to a downturn in regional markets and global industry outlook,” said Jose Maria Alapont, Federal-Mogul President and CEO. “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."

For more information about Federal-Mogul, go to: http://www.federalmogul.com.