Alpine to lay off 195 workers as it relocates work to Mexico
Thread Starter
1000 Watt CAFz'r
Joined: Mar 2001
Posts: 1,626
Found this over on www.soundillusions.net
Aug. 14, 2003
Scott Hall
Johnson County Daily Journal, Indiana
Alpine Electronics Manufacturing of America is moving its Greenwood manufacturing operation to Mexico, eliminating 195 hourly and salaried jobs.
About 70 employees will remain at the Emerson Avenue plant, which will expand its distribution and warranty operations for the company’s car audio systems and other mobile electronics products.
President Mike Crumbo announced the decision Wednesday afternoon at a meeting with the more than 260 employees, who average nine to 10 years’ experience with the company. Workers in the parking lot later were clearly shaken by the news but declined to speak in detail.
“It’s too much of a blow,” said one woman who had worked at the plant since its 1986 opening.
“It’s a real shock,” said another woman, also a longtime employee.
Crumbo said industry competition forced the decision, which he said was made within the past few months in conjunction with the global headquarters in Japan.
“It’s not been a long time,” he said. “We wanted to tell people as soon as we could.”
The company expects to begin moving production lines in the spring and finish the process by the end of 2004. Employees will receive as much notice as possible when their individual jobs are terminated, Crumbo said.
The announcement apparently took state and local officials by surprise.
Greenwood Mayor Charles Henderson said the company contacted him around 10 a.m. Wednesday with news he dreaded to hear.
“Greenwood hasn’t lost anything like this since Arvin,” Henderson said, vowing to continue working to attract new business and retain existing businesses.
Chris Kinnett, executive director of the Johnson County Development Corp., said Alpine’s decision to keep some operations in Greenwood offers hope for future expansion.
The loss of Alpine’s production lines is the second major blow to local employment in two years. Kawneer Co. in Franklin, which made parts for commercial door and window frames, closed in 2002, eliminating 225 jobs.
Alpine’s move is driven by competition. Its customers — major automakers such as Honda, Ford, BMW, Chrysler and Mercedes Benz — continually press for lower costs, Crumbo said. With those automakers themselves stretched thin by continued rebates on new cars, the suppliers face even more pressure to cut labor costs.
“We’re competing now with a lot of companies who have moved their manufacturing overseas,” he said. “It’s really unfortunate that we’re dealing with forces out of our control here.”
As a result, all of Alpine’s manufacturing will be consolidated at a 10-year-old plant in Reynosa, Mexico, which currently employs about 650 people.
The Greenwood manufacturing operation was not losing orders, Crumbo said, but the company has not developed enough new business to justify two manufacturing plants. He said managers have been keeping employees informed of the situation during monthly meetings.
He praised local workers for years of effort in reducing costs and increasing efficiency.
“As I told the employees, it’s no consolation, but we’ve done an exceptional job here,” he said. “We’ve tried everything we know to try.”
Of the 195 jobs to be lost, about 70 percent are light industrial assembly positions with salaries ranging from $8 to $14 per hour, averaging about $11 per hour, Crumbo said. The other 30 percent are salaried management and technical positions, and some of those employees will be offered jobs in Mexico.
Alpine has been an active corporate citizen, particularly in its involvement with the Greenwood Chamber of Commerce and the United Way of Johnson County. The company hopes to continue those relationships, Crumbo said, although the loss of nearly 200 jobs will affect its ability to contribute to United Way through payroll deductions.
Crumbo joined the company more than seven years ago and was vice president of operations before being named president in April 2002, replacing the retiring Bernie Pierce. Crumbo will remain at the Greenwood site, which he said remains a strategic location for the distribution and warranty operations.
Alpine Electronics Manufacturing of America is a subsidiary of Alpine Electronics of Tokyo, Japan, a $2 billion automotive electronics manufacturer with operations throughout Asia, Europe and the Americas.
[ August 15, 2003, 09:44 PM: Message edited by: tweek ]
Aug. 14, 2003
Scott Hall
Johnson County Daily Journal, Indiana
Alpine Electronics Manufacturing of America is moving its Greenwood manufacturing operation to Mexico, eliminating 195 hourly and salaried jobs.
About 70 employees will remain at the Emerson Avenue plant, which will expand its distribution and warranty operations for the company’s car audio systems and other mobile electronics products.
President Mike Crumbo announced the decision Wednesday afternoon at a meeting with the more than 260 employees, who average nine to 10 years’ experience with the company. Workers in the parking lot later were clearly shaken by the news but declined to speak in detail.
“It’s too much of a blow,” said one woman who had worked at the plant since its 1986 opening.
“It’s a real shock,” said another woman, also a longtime employee.
Crumbo said industry competition forced the decision, which he said was made within the past few months in conjunction with the global headquarters in Japan.
“It’s not been a long time,” he said. “We wanted to tell people as soon as we could.”
The company expects to begin moving production lines in the spring and finish the process by the end of 2004. Employees will receive as much notice as possible when their individual jobs are terminated, Crumbo said.
The announcement apparently took state and local officials by surprise.
Greenwood Mayor Charles Henderson said the company contacted him around 10 a.m. Wednesday with news he dreaded to hear.
“Greenwood hasn’t lost anything like this since Arvin,” Henderson said, vowing to continue working to attract new business and retain existing businesses.
Chris Kinnett, executive director of the Johnson County Development Corp., said Alpine’s decision to keep some operations in Greenwood offers hope for future expansion.
The loss of Alpine’s production lines is the second major blow to local employment in two years. Kawneer Co. in Franklin, which made parts for commercial door and window frames, closed in 2002, eliminating 225 jobs.
Alpine’s move is driven by competition. Its customers — major automakers such as Honda, Ford, BMW, Chrysler and Mercedes Benz — continually press for lower costs, Crumbo said. With those automakers themselves stretched thin by continued rebates on new cars, the suppliers face even more pressure to cut labor costs.
“We’re competing now with a lot of companies who have moved their manufacturing overseas,” he said. “It’s really unfortunate that we’re dealing with forces out of our control here.”
As a result, all of Alpine’s manufacturing will be consolidated at a 10-year-old plant in Reynosa, Mexico, which currently employs about 650 people.
The Greenwood manufacturing operation was not losing orders, Crumbo said, but the company has not developed enough new business to justify two manufacturing plants. He said managers have been keeping employees informed of the situation during monthly meetings.
He praised local workers for years of effort in reducing costs and increasing efficiency.
“As I told the employees, it’s no consolation, but we’ve done an exceptional job here,” he said. “We’ve tried everything we know to try.”
Of the 195 jobs to be lost, about 70 percent are light industrial assembly positions with salaries ranging from $8 to $14 per hour, averaging about $11 per hour, Crumbo said. The other 30 percent are salaried management and technical positions, and some of those employees will be offered jobs in Mexico.
Alpine has been an active corporate citizen, particularly in its involvement with the Greenwood Chamber of Commerce and the United Way of Johnson County. The company hopes to continue those relationships, Crumbo said, although the loss of nearly 200 jobs will affect its ability to contribute to United Way through payroll deductions.
Crumbo joined the company more than seven years ago and was vice president of operations before being named president in April 2002, replacing the retiring Bernie Pierce. Crumbo will remain at the Greenwood site, which he said remains a strategic location for the distribution and warranty operations.
Alpine Electronics Manufacturing of America is a subsidiary of Alpine Electronics of Tokyo, Japan, a $2 billion automotive electronics manufacturer with operations throughout Asia, Europe and the Americas.
[ August 15, 2003, 09:44 PM: Message edited by: tweek ]
Thread
Thread Starter
Forum
Replies
Last Post
Chadxton
Off-topic Chat
11
Dec 23, 2003 12:31 PM
