SOUTHFIELD, Mich. (Dec. 22, 2008) — Federal-Mogul Corp. has expanded its existing restructuring plan announced Sept. 17 in response to what it said are continued challenging conditions in the global automotive market.
The Southfield-based automotive parts maker plans to implement several initiatives designed to further consolidate, downsize or close additional locations. The actions are expected to reduce the company´s global workforce by approximately 4,600 additional positions or about 10 percent, Federal-Mogul said, though it did not disclose specific sites pending further evaluation and consultations with appropriate parties.
The additional restructuring actions will begin during the first quarter of 2009. Preliminary cost estimates for the additional restructuring are approximately $80 million through the end of 2009, the company said, and are in addition to expense estimates included in its original restructuring plan.
“We continue to take actions in response to the ongoing significant downturn in regional markets and global industry outlook,” said Jose Maria Alapont, Federal-Mogul president and CEO. “These measures are required to prepare the company for the unprecedented challenges in the automotive industry,”
Founded in Detroit in 1899, Federal-Mogul has nearly 47,000 employees in 35 countries. The company supplies powertrain and safety technologies to the OE manufacturers of automotive, light commercial, heavy-duty and off-highway vehicles, as well as in power generation, aerospace, marine, rail, industrial, and the worldwide aftermarket.