Penske Logistics to close site servicing Ford

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Penske Logistics, the lead logistics provider for Ford Motor Co. in North America, plans to shut down its Riverview, Mich., site by Sept. 20 and cut 183 jobs.

Penske said the closing of the suburban Detroit unit is due to an unexpected loss of a fair market bid. As a result, Penske will no longer be providing Ford with certain transportation services, Penske said in a filing with the state of Michigan.

Of those employed at the site, 161 are represented by the UAW and another 22 are nonunion employees.

Penske Logistics is a unit of Penske Corp., the parent of Roger Penske's business organization. With operations in North America, South America, Europe and Asia, Penske Logistics provides supply chain management and logistics services to major industrial and consumer companies throughout the world.

Alen Beljin, a spokesman for Penske Logistics in Reading, Pa., said the Riverview center represents “a small piece” of its overall supply chain transportation business with Ford.

Beljin said the company expects that the union positions in Riverview will be transferred or assumed by a new vendor on that Ford account, while Penske Logistics is looking to relocate the non-union employees there before Sept. 20.

“What we’re hoping within that timeframe is to be able to relocate those people into new jobs locally, or if necessary then to offer something that might involve a geographic change,” he said.

You can reach Sherri Welch at swelch@crain.com.


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