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Federal Mogul to Restructure, Cut 1,500 Jobs
Ford Moving Premier Headquarters to Southern California
OSHA Launches Violations Website
Federal-Mogul Corporation has announced that they will be restructuring their company "to improve Federal-Moguls cost structure and drive out nonproductive assets."
As part of this restructuring, Federal-Mogul officials say they expect to cut approximately 1,500 people from Federal-Moguls worldwide employees of 50,400.
Federal-Mogul says they plan to close 22 of the companys North American aftermarket branch warehouses as well as "rationalize" their administrative staffs -- downsizing them to adjust for closing facilities.
The company will also consolidate all of their aftermarket gasket products into the Skokie, IL., distribution facility, resulting in the closure of the warehouse for the McCord gasket line.
In a similar move, all heavy wall bearings will be distributed from the companys site in McConnelsville, OH., resulting in the closure of the Mooresville, IN., manufacturing facility.
Federal-Mogul will also close its seal plant in Milan, MI., with operations consolidated into other facilities.
"We are working to reduce our invested capital base to improve economic value," said Dick Snell, chairman and chief executive officer. "I am pleased with the aggressive actions identified by our team."
The restructuring activities begin in 2000 and are expected to be complete by the end of 2002.
Ford Motor Company has announced that it will move its Premier Automotive Group to Southern California.
Irvine will become the North American headquarters for Jaguar, Volvo and Aston Martin, as well as continuing to serve as the global headquarters for Lincoln Mercury.
Ford shocked the industry in 1998 when it relocated Lincoln Mercurys corporate headquarters to Irvine -- marking the first time since World War II that an existing domestic automobile brand has left Michigan. In 1999, following its move to California, Lincoln-Mercury had its best year ever, making it the best-selling U.S. luxury brand.
The new headquarters will be part of an expanded Ford Motor Company campus at the Irvine Spectrum. The 300,000 square foot facility, slated for completion in 2001, will employ up to 800 people.
"As the Lincoln Mercury experience has demonstrated, California is an energetic, consumer-focused culture that will serve as an ideal location to plan the growth of these premium brands," said Dr. Wolfgang Reitzle, group vice president, Ford Motor Company and president of the Premier Automotive Group.
OSHA, the Federal Occupational Safety and Health Association, has established a new website that makes all violations of their rules public knowledge.
OSHAs site www.osha.gov/cgi-bin/est/est1 features a database that lists companies, cross-referenced by name, industry, and violation. The site is open to anyone with a computer and allow individuals to run searches by company as well as other factors.
Companies are encouraged to check their listings on the website. OSHA concedes that cases listed may still be under review and there may be errors. If an error is discovered, there is information on the website to let companies know how to correct their entry.
Originally published in the June/July 2000 issue of Automotive Booster Magazine.
Copyright 2000 by KAL Publications Inc.
Covering the California auto parts aftermarket since 1928.