Charlotte, North Carolina--Continental Tire North America Inc. is cutting back car and light truck tyre production at its Charlotte plant by about 30 percent to 17 000 to 18 000 units a day, citing high inventories and high manufacturing costs.
The cutback, to occur gradually throughout June, will affect 200 to 300 employees. Conti said it will provide layoff benefits to hourly employees in accordance with its collective bargaining agreement with the United Steelworkers union; salaried employees will be provided layoff benefits "in accordance with applicable company policies."
"Unfortunately, this was our only option, as Charlotte is the highest cost plant for Continental Tire," said Rick Ledsinger, vice president, human resources for the tyre maker.
"Although this reduction will impact many of our Charlotte employees, it is critical that Continental Tire continues to make the changes necessary to be competitive in the U.S. tyre market. We will do our utmost to assist our employees at this difficult time."