Continental Teves is watching what's happening in the auto industry and evaluating its business on a week-by-week basis, say company officials.
Michele Tinson, director of communications for NAFTA at the company, said Continental is "adjusting our schedule to market restraints."
The company manufactures automotive braking systems.
Tinson said over the last year, the Morganton plant has laid off 150 workers, which included temporary workers. The plant has around 400 employees, she said.
The reason for the layoffs was the result of softer sales, she said.
"We continue to evaluate the market on a weekly basis and make adjustments," Tinson said.
The company has implemented a hiring freeze and has frozen raises, Tinson said. The company is currently reviewing its manufacturing sites in North America, she said.
And company officials continue to watch economic conditions, Tinson said.
On Wednesday The News Herald reported other Burke County companies that supply parts to auto makers said the downturn in the market hasn't dramatically affected them so far.
Don Tingen, executive vice president of Viscotec in Morganton, which makes textile fabrics to sell to the Japanese automotive industry, said the company hasn't seen a large drop in business.
Sypris Technologies, which makes axles for heavy trucks, has seen about a 20 percent drop in orders since 2007, said Mark Cain, vice president of human resources for the company.
And Molded Fiberglass in Morganton is holding steady, said Joe Wilk, senior vice president for the company.
Economic conditions for automakers, particularly the Big Three, aren't looking good.
A proposed $25 billion government bailout plan was stalled on Capitol Hill on Thursday. The $25 billion would come out of the $700 billion Wall Street rescue fund.
The leaders of General Motors Corp., Ford Motor Co. and Chrysler LLC painted a grim picture of their financial position during two days of congressional hearings, warning that the collapse of the auto industry could lead to the loss of 3 million jobs. Detroit's automakers, hurt by a sharp drop in sales and a nearly frozen credit market, burned through nearly $18 billion in cash reserves during the last quarter — about $7 billion at GM, almost $8 billion at Ford and $3 billion at Chrysler. Both GM and Chrysler said they could collapse in weeks.
The stakes are high. The Detroit automakers employ nearly a quarter-million workers, and more than 730,000 other workers produce materials and parts that go into cars. About 1 million more people work in dealerships nationwide. If just one of the automakers declared bankruptcy, some estimates put U.S. job losses next year as high as 2.5 million.
The Associated Press contributed to this story.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement