Supplier Metaldyne Corp. is trimming benefits for its salaried employees in another round of cost-cutting actions, the company said Thursday.
All salaried employees are being forced to purchase a two-week vacation during the first quarter. The company also significantly reduced employee travel, ended merit-based raises for 2009 and suspended company 401(k) matching and retirement contributions.
Metaldyne also eliminated its leased North American Chassis Products business unit facility, consolidating the operation and its headquarters in Plymouth, Mich., into another company building there.
With this move, we will have rationalized from three headquarters facilities in Plymouth to one facility, which not only saves expenses but better streamlines how we will operate as a company, CEO Thomas Amato said in a statement. This is another step in our plan to focus our resources on our manufacturing operations, processes and product technologies.
In late November, Metaldyne bought back nearly all of about $390 million in bonds through a tender offer in a move to de-leverage its balance sheet, and avoiding a pre-packaged bankruptcy filing.
The company has closed plants and offices throughout 2008 to improve its balance sheet as vehicle production has fallen to its lowest level in at least two decades.
The company also sold its GLO S.r.L. constant-velocity joint factory in Italy to Sweden-based AB SKF in late November.
Constant-velocity joints connect the front wheels to the axle of a front-wheel drive car, allowing the wheels to be powered and steer.
Metaldyne, which makes a variety of powertrain, chassis and transmission parts, also closed plants in Farmington Hills, Mich., and Greenville, N.C., as well as an office in Plymouth in May 2008. And, the company said in July 2008 it planned to divest two additional plants in Niles, Ill., and Middleville, Mich. The Niles plant will close March 31.
Metaldyne, a unit of Japan-based Asahi Tec Corp., ranks No. 89 on the Automotive News list of the top 100 global suppliers with estimated worldwide sales to automakers of $1.86 billion in 2007.