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Ohio Auto Parts Makers Cutting Jobs As Car Sales Slow

Slowdowns in auto sales and production are trickling down to Ohio's auto parts makers, resulting in hundreds of layoffs.

TOLEDO, Ohio (AP) -- Slowdowns in auto sales and production are trickling down to Ohio's auto parts makers, resulting in hundreds of layoffs.

Some of the layoffs are temporary while other jobs are being lost for good.

"They say every auto assembly job means 8 to 10 parts jobs," said United Auto Workers Ohio President Lloyd Mahaffey.

Auto sales in June were their worst in 17 years and most experts predict the declines will continue through the year. Automakers have responded by slowing production because dealers already have too much inventory.

Chrysler LLC's announcement last week that is shutting down production of the Jeep Liberty and Dodge Nitro for two months this summer at its Toledo assembly plant already has led to more layoffs at suppliers who make parts for the plant.

"Everybody that does anything for the Liberty in northwest Ohio will be hurt by it because they won't need the parts," Mahaffey said.

Dana Corp. will temporarily lay off 95 workers at its Toledo plant that puts together axles and driveshafts for the Liberty and Nitro.

"It's not going to be pretty," said Joseph Phillippi, an auto analyst with AutoTrends Consulting in Short Hills, N.J. "It's not just the parts makers; it's the guys that supply services, tooling, and all sorts of components that go into the assembly plant that will hurt."

Other layoffs are coming soon.

  • About 150 workers who make seating foam products at Woodbridge Corp. in Fremont will lose their jobs this month.
  • About 175 workers at the Kongsberg Driveline Systems plant in Van Wert will be permanently laid off this month after the company relocated work.
  • Continental Structural Plastics Inc. will shut down its operations in North Baltimore where 270 people work.
  • General Motors Powertrain plant in Toledo will close for one extra week this month as part of its summer shutdown.
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