Auto Suppliers May Cut Thousands of Jobs

From United Press International

LANSING, MI — Up to 2,000 jobs in Michigan may be cut by auto suppliers when General Motors closes its assembly plant in Lansing, reports the Grand Rapids Press.

That number could grow to 4,000 in two years as the job cuts seep down to second- and third-tier parts suppliers, the report said.

“Actually, worse things are happening than just Lansing going down,” said Sean McAlinden, chief economist at the Center for Automotive Research in Ann Arbor.

“A lot of plants are taking a production adjustment week. It’s very grim, and it’s going to get worse for the rest of the year.”

Production slowdowns, high steel and plastics costs, and pricing pressure from automakers have combined to put tremendous pressure on a dwindling circle of suppliers and their contractors.

Delphi Corp. is a major GM supplier, but spokeswoman Luce Rubio said the company could not specify what the trickle-down impact will be on its plants. It owns a fuel injector plant in Coopersville and a hydraulic lifters plant in Wyoming.

“It’s definitely going to affect us,” Rubio said. “GM is a big customer of ours, and more than one facility will be affected. We just don’t know the impact yet.”

_______________________________________

Click here to view the rest of today’s headlines.