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United States News Title: Freightliner moving truck production to Mexico, raising fears of more layoffs (More NAFTA treason) Hundreds of people have been laid off from Daimler Trucks North America’s Components and Logistics plant in Gastonia and its Freightliner Truck Manufacturing Plant in Mount Holly since 2007, as demand for its vehicles fell to lows not seen for decades. As of mid-November, about 627 people were working at the Gastonia plant compared to 1,126 in March 2007. In Mount Holly, 128 workers remain from a work force of 1,499 in March 2007, according to officials with the United Auto Workers. Daimler Trucks North America estimates that 54 percent of its truck production will take place in Mexico by 2011, up from 30 percent last year, according to a company newsletter e-mailed to The Gaston Gazette. The newsletter dated October 2009 highlights the company’s Continuous Cost Improvement or “CCI” program. Given the expected shift in DTNA’s production footprint, the CCI Mexico Sourcing Team is tasked with relocating or developing suppliers near plants in Saltillo and Santiago, Mexico, the newsletter states. The overall goal is to reduce the cost of materials and logistics by $2,000 per truck. “With DTNA’s new manufacturing footprint, more than half of DTNA‘s trucks will be produced in our plants in Saltillo and Santiago,” the newsletter states. “Therefore, we need to adapt our supply base by relocating or developing suppliers in Mexico to minimize our logistics costs and take advantage of lower labor rates. This effort is crucial to stay competitive in the NAFTA market.” Scott McAllister, president of the local United Auto Workers 5286, said the newsletter upset local workers as it circulated through Daimler’s Components and Logistics plant in Gastonia. As production shifts to Mexico, McAllister said workers are concerned that Gastonia will be the source of fewer parts and more people will lose their jobs. “Here’s a letter saying they’re actually trying to source parts to Mexico,” McAllister said. “It’s only a matter of time. The writing’s on the wall.” But DTNA spokeswoman Maria McCullough said the company’s Mexico Sourcing Team is not working to relocate in-house parts manufacturing from Gastonia to Mexico. Citing the recall of 180 workers to the Gastonia plant since July, including 25 this month, McCullough said Gastonia workers are benefiting from the company’s efforts. “Our Gastonia plant employees have directly benefited by the higher vehicle sales rates that DTNA has been able to achieve by our increased competitiveness in North America,” she said. The company is working with its suppliers in the U.S., Canada, Europe, Asia and Mexico to “shorten the supply line from their existing factories to our factories located in Santiago and Saltillo.” But DTNA also has a team working to shorten the supply line between suppliers and factories in the Carolinas, McCullough said. The company newsletter explains that Washington-based Consolidated Metco Inc., one of DTNA’s biggest plastic suppliers, is building a facility for plastic injection molding in Monterrey, Mexico, to supply Saltillo and Santiago. “The plant‘s formal start of operation is planned for end of Q1 2010, although they are performing light assembly of cabinets on site already now, the newsletter states. “The business case leading to the decision of moving a significant portion of the manufacturing to Monterrey is based on the manufacturing footprint of DTNA and the future model distribution.” At the same time, McCullough said ConMet is “boosting its capabilities in the Carolinas (Monroe and Bryson City) relocating some production lines from elsewhere for both plastics and aluminum castings.”
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#3. To: Nebuchadnezzar (#0)
wasn't that long ago they completely revitalized their plant latest machine tools....new engines...etc..etc..etc..
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