White-collar automotive jobs at carmakers and suppliers are disappearing by
the thousands.
Salaried auto workers, like their blue-collar counterparts, are being cut
because of collapsing North American vehicle sales and the consolidation
of engineering into fewer centers with global responsibility.
Each of the Detroit Three has announced significant white-collar job cuts
this year, totaling about 8,400 positions.
Several large suppliers also are cutting salaried workers to deal with the
sales slump. They include Delphi Corp., Lear Corp., BorgWarner Inc. and American
Axle & Manufacturing Holdings Inc.
But there's more to the cuts than just bad U.S. business, says Dave Cole,
chairman of the Center for Automotive Research, a think tank in Ann Arbor,
Michigan.
U.S. engineers are losing out as Ford Motor Co. and General Motors locate
global platform engineering for their midsize cars in Europe and subcompacts in
Asia, Cole said.
Ideally, North American engineers would pick up work from overseas for large
cars and light trucks, he said. But those are the segments suffering the most
now from a consumer shift to more fuel-efficient small cars, Cole said.
Even BorgWarner, one of the most profitable of the Detroit-based parts
suppliers, is cutting 1,000 North American jobs, including 220 salaried
positions.
The company is not only responding to the North American sales environment
but also trying to get ahead of potential tougher times. BorgWarner, which makes
turbochargers and engine and transmission management systems, is experiencing
flat revenue in North America and increases in Europe and Asia.
"We have to make sure we're right-sized for the business that we have here,"
said spokesman David Peterson.
Market conditions prompted Delphi to announce 600 U.S. salaried job cuts in
its electronics and safety division centered around operations in Kokomo, Indiana,
said Delphi spokesman Lindsey Williams.
Dana Holding Corp. announced in late July that it would lay off 600 salaried
workers in North America, or about 20 percent of its salaried North American
work force.
A few weeks later, during its August 8 earnings call, company executives
announced that 3,000 layoffs, including the 600 reported earlier, would take
place by year’s end. Axle maker Dana did not break out the number of salaried
and hourly worker cuts.
"Dana is scaling back operations to match market demand," a spokesman
said.
A supplier vice president who asked not to be named said his employer has
been selective with salaried cuts. The company cut headcount in departments
supporting North American lines of business but spared salaried employees
working on global platforms for the same products, the source said.
Last week, Linamar Corp. announced plans to lay off 400 to 500 workers, after
a cut of 300 to 400 employees earlier this year. A spokesman for the Canadian
supplier blamed industry production cuts. He wouldn't say how many of the
layoffs would be salaried workers.
The layoffs come despite double-digit earnings growth reported last month for
the powertrain-products maker. White-collar employees make up 40 percent of
Linamar's workforce.
Filed by David Barkholz and Robert Sherefkin of
Automotive
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