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Decline in auto sales and production slows need for inventory. Hundreds of Ohioans to lose jobs

Jul 05, 2008


TOLEDO: 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 will be lost for good.

''They say every auto assembly job means eight 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 many vehicles.

Chrysler LLC's announcement last week that it 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 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 lay off 95 workers at the Toledo plant that puts together axles and drive shafts for the Liberty and Nitro.

''It's not going to be pretty,'' said Joseph Phillippi of AutoTrends Consulting in Short Hills, N.J. ''It's not just the parts makers; it's supply services, tooling, and all sorts of components that will hurt.''

LINK:Ohio.com - Parts makers plan layoffs
 
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