AUBURN HILLS, Mich. (AP) -- Citing what it called a permanent shift in the U.S. auto industry, parts supplier BorgWarner Inc. said Thursday it will cut 1,000 jobs -- or 16 percent of its work force in North America.
The cuts will occur in the third quarter and be spread across the U.S., Canada and Mexico.
BorgWarner said its sales in the U.S. fell 17 percent in the second quarter but grew 13 percent overseas, tracking broader trends in the auto industry.
Chairman and Chief Executive Tim Manganello said the job cuts are necessary to remain competitive.
"Our decision was not made lightly or without regard for the interests of our employees, but was necessary to address what we view as a continuing, fundamental, permanent shift in the North American auto industry," he said in a statement.
Manganello said by acting now, the company can manage through "an extremely difficult period" by selling systems designed to provide fuel efficiency.
BorgWarner said the actions will lead to pretax costs of $10 million to $12 million but begin saving the company money this year.
Auburn Hills, Mich.-based BorgWarner makes parts and systems for auto powertrains, including turbochargers, emissions systems and timing chain systems.
Shares of BorgWarner rose $2.53, or 6.2 percent, to $42.92 in morning trading.