Tuesday, March 30, 2004


Johnson Controls to lay off 1,065 workers in Michigan, Kentucky
HOLLAND, Mich. (AP) — Automotive supplier Johnson Controls Inc. is transferring sun visor production from its plants here and in Glasgow, Ky., to a Mexican factory, resulting in a loss of 1,065 U.S. jobs.

The company will lay off 885 workers at its Southview component plant in Holland and 180 employees in Glasgow. Those are the only two U.S. locations where it makes visors for cars and trucks assembled in North America.

Liz Boyd, a spokeswoman for Gov. Jennifer Granholm, said Johnson Controls sent a letter to the Michigan Economic Development Corp. informing the state agency about its decision on Monday.

"We are disappointed to say the least," Boyd said. "We're not only disappointed at the news, but we're disappointed the state and the community didn't have a chance to sit down and see what solutions we could come up with to keep those jobs."

Liz, nothing the state can offer would have kept those jobs. We cannot compete with $1.57 an hour. I applaud the efforts- but- face it kids- this is a done deal, and there will be more to follow. Labor at 1/10th (or less) of the US cost is too good to pass up.

From WOOD TV8-

Last quarter, the company earned $164.5 million, up 17 percent from the same period last year. Revenues were up 40 percent to $6.4 billion.

It would appear the company would have no need to cut costs, but auto analysts say suppliers are under constant price pressure from their customers. The auto makers want to sell cheaper cars, and while Johnson Controls may have the customers today, it won't tomorrow, if its price doesn't compete.

Yeah, we wouldn't want to cut into a 6.4 BILLION dollar revenue. I guess it won't matter that these people will no longer be able to afford to buy autos when they lose their jobs.

Won't it be funny when all these companies turn around and discover that they have cut the legs off of their own market.