Auto interiors specialist International Automotive Components Group will cut 280 jobs in Sweden. The supplier warned that deeper cuts and possibly plant closures could follow.
IAC, which employs about 1,700 in Sweden, blames the job losses on declining orders that have resulted from poor new-car sales in the U.S. and Europe. The company has plants in Färgelanda, Gothenburg, Skara, Tidaholm and Trollhättan, Sweden. The company says the Swedish market has been hit particularly hard by the slowdown in car sales.
If new-car sales continue to be weak, IAC will consider cutting more job and closing plants, Marcus Nyman, IAC's vice president of operations in Sweden, said in the statement.
IAC ranks No. 31 on the Automotive News Europe list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $5.3 billion in 2007. The company was created two years ago by New York investor Wilbur Ross, who combined the assets of bankrupt Collins & Aikman Corp. with a number of other supplier acquisitions.
IAC's job cuts follows Valeo's announcement last week that it would stop making rear lights at its factory in Neuses, central Germany. The decision will affect 200 workers at the plant, which will continue to make windshield wipers. The French parts supplier will shift the production of rear lights to factories in France and Poland.
Valeo ranks No. 12 on the ANE list of top 100 global suppliers with worldwide original-equipment automotive parts sales of $13.3 billion in 2007.