GM Plant Closings Hit Home at I.C. Auto Parts Plant

6/1/2009

To contact IAC, visit www.iacgroup.com or call 248-455-7000.

By Dave DeWitte The Gazette

International Automotive Components laid off about 36 more workers at its Iowa City plant in response to General Motors' plant shut-down schedule.

GM is planning to shut down about 13 assembly plants this summer for up to two months in order to reduce an inventory backlog. It is also expected to announce some permanent assembly plant closings next week.

"As GM re-opens plants, we will be bringing employees back from temporary layoff," said David Ladd, executive director of marketing and communications for the Dearborn, Mich., auto parts supplier.

The problem, Ladd said, is that the closing schedules vary from one General Motors plant to the next. As a result, Ladd said, "we will literally have people returning and leaving on temporary layoff on a regular basis over the next three months."

Ladd said the intermittent layoffs are consistent with what most auto industry suppliers across the country are experiencing.

The Iowa City plant, formerly operated by Lear Corp. employed as many as 600 earlier this year. The company has since undertaken both temporary and permanent layoffs to bring production in line with customer needs.