American Axle says 1,473 workers leaving |
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Published
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Thu, 11 Jan 2007 21:30
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DETROIT (AFX) - Auto parts supplier American Axle said Thursday that 1,473 workers agreed to leave the company through early retirement incentives, buyouts and educational opportunities.American Axle & Manufacturing Holdings Inc. is projected to save more than $100 million annually from the program, Chairman and Chief Executive Richard E. Dauch said in a statement.It is estimated to cost the Detroit-based company $140 million, he said.The company offered the incentives to about 6,000 employees represented by the United Auto Workers union at five plants, including in Detroit; Three Rivers, Mich.; Buffalo, N.Y.; Tonawanda, N.Y.; and Cheektowaga, N.Y.More than 1,300 of the workers who accepted the deal already have left. About 1,200 accepted buyouts.Workers who retire will retain all vested pension and post-retirement benefits. Those who accepted buyouts will retain vested pension benefits but forfeit post-retirement benefits.The company expects to incur special charges in a range of $175 million to $200 million in 2006.American Axle also announced that it plans to idle its U.S. production dedicated to the mid-size light truck product range. It expects to suffer asset impairment charges of as much as $200 million for 2006.American Axle's announcement came on the same day that another auto supplier, Visteon Corp., said it expected a net loss of $244 million for last year and a loss of $267 million to $367 million this year.Production cuts from U.S. automakers and other companies have hurt auto suppliers, several of which are operating under bankruptcy protection.Shares of American Axle rose $1.17, or 6.6 percent, to $18.85 in Thursday afternoon trading on the New York Stock Exchange. They have traded in a 52-week range of $14.45 to $20.74.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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