Auto-parts supplier Cooper-Standard Automotive Inc. is dismissing about 600 salaried employees while overhauling its global structure and reassigning top executives.
The suburban Detroit company dismantled its body and chassis and fluid systems divisions, opting instead to operate through North American and international divisions. The international division will cover business in Europe, South America and Asia.
This is a structural change, given the fact that the industry appears that it will remain down for the near future, said spokeswoman Sharon Wenzl.
The 600 workers represent about 20 percent of the salaried work force. Employees are being notified today and will be offered severance packages and continued benefits, Wenzl said. Some will receive outplacement services.
Cooper-Standard has a long history of proactively adjusting to changing forces in the market, Executive Chairman Jim McElya said in a statement. Our decision to reorganize our operations will enable us to effectively operate in the extremely challenging industry conditions that are persisting."
McElya will resume his former role as CEO.
Edward Hasler, appointed president and CEO in June, was appointed president of the new North American unit.
Hasler was also named vice chairman of parent Cooper-Standard Holdings Inc. as well as Cooper-Standard Automotive.
Keith Stephenson becomes president of the international division. He was most recently president of the body and chassis unit.