Delphi to Cut Jobs, Plants

The world’s largest vehicle-parts maker Delphi Automotive Systems said Thursday that it would eliminate 11,500 jobs worldwide, discontinue making non-core product lines, consolidate nine plants and take a first-quarter charge of $400 million.

The company will cut about 7,200 jobs throughout the United States as it reduces it global work force by 5%.

Also, due to weak vehicle orders, and soft U.S. aftermarket sales, the company said revenues in the first quarter will be about $6.4 billion. That is $100-$150 million below the levels it had been expecting.

Alan Dawes, Delphi’s chief financial officer, said that although he expects a better second quarter, “unstable order flow has prevented us from reducing enough of our costs to remain at previous levels of profitability.”

As briefly indicated during the first quarter, Delphi is in the process of restructuring, closing or selling plants in Fort Defiance, Ariz., Robertsdale, Ala., and Saginaw, Mich.

It is also reviewing its plants in Ande, France, Minas Gerais, Brazil, Piracicaba, Brazil, Bochum, Germany, Casoli, Italy, and Southampton, U.K.

Earlier this week, Delphi said that it plans to open an assembly plant in Thailand. The plant would begin manufacturing auto brake calipers and fuel handling systems in September. Transport Topics

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