Autoblog

Volkswagen lays off 500 Chattanooga workers

Jeffrey N. Ross — Fri, 19 Apr 2013 17:46:00 EST

Filed under: Sedan, Hirings/Firings/Layoffs, Plants/Manufacturing, Volkswagen

The redesigned Volkswagen Passat has been a decent seller since its debut in 2011, but sales have apparently dropped off enough that the automaker is trimming some of the employees from its Chattanooga, TN assembly plant. According to Automotive News, Volkswagen will be cutting shifts and laying off 500 contracted workers in response to slowing sales.

Currently, the plant has three teams running 10-hour shifts Monday through Saturday, but starting May 13, this will be reduced down to two teams running 10-hour shifts Monday through Thursday. This will be done to reduce dealer inventory (the article says that VW dealers, on average, have a 97-day supply of Passats) and production capacity (currently running at an annual pace of 170,000 units, which is more than the 150,000 annual units the plant was planned to produce).

This, of course, isn't saying that the Passat has been a failure since VW added 200 full-time employees to the plant in February 2012 to keep up with increased demand. The AN article says that automakers frequently overstaff plants during the launch of a new product - or in this case, a new product and a new plant - but eventually reduce the workers as things run smoother and more efficiently.

Volkswagen lays off 500 Chattanooga workers originally appeared on Autoblog on Fri, 19 Apr 2013 17:46:00 EST. Please see our terms for use of feeds.

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Fisker mass layoffs triggers federal lawsuit

Jonathon Ramsey — Sun, 07 Apr 2013 09:00:00 EST

Filed under: Sedan, Government/Legal, Hirings/Firings/Layoffs, Earnings/Financials, Fisker, Electric, Luxury

Turns out it's illegal to surprise three-quarters of your workforce with pink slips on a random Friday morning. Just before the weekend, Fisker Automotive furloughed 160 employees as "a necessary strategic step to... maximize the value of Fisker's core assets," which is lingo for trying to conserve as much cash and value as possible while the financially troubled company searches for a buyer. But Fisker Automotive laid off that group of employees without giving them 60 days notice and that detail has instigated proceedings in federal court against it.

The US Worker Adjustment Retraining Notification (WARN) Act mandates the 60-day notification period before mass layoffs, and according to a suit filed in US District Court in California by Outten & Golden LLP there are additional violations of California laws in the company's actions. Ex-Fisker employee Sven Etzelsberger is the named plaintiff in the case that seeks 60 days of "wages, salary, bonuses and other benefits" for Etzelsberger and other such affected employees. It isn't unusual for bankrupt companies to pay severance in order to keep this kind of thing from happening, but it seems Fisker employees were given nothing to take home but unused vacation pay, boxes of cubicle tchotchkes and white envelopes full of bumf.

The case will pit the letter of the law against the exceptions allowed for a "faltering company" and "unforseeable business circumstances." Fisker's new communications firm had no comment on the litigation.

Fisker mass layoffs triggers federal lawsuit originally appeared on Autoblog on Sun, 07 Apr 2013 09:00:00 EST. Please see our terms for use of feeds.

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Peugeot to axe 1,500 more jobs as Euro sales funk deepens

Zach Bowman — Thu, 13 Dec 2012 09:01:00 EST

Filed under: Europe, Hirings/Firings/Layoffs, Earnings/Financials, Peugeot

Peugeot has announced it will cut 1,500 jobs by 2014 as the European Union economy continues to falter. Bloomberg reports the layoffs join a further 8,000 announced back in July, and will be made by simply not replacing workers who leave. All told, the French automaker wants to slash its current workforce by 17 percent, or around 11,200 positions, by 2014, while also shuttering a facility outside of Paris and working to build strategic alliances with manufacturers like General Motors. Workers have been told the company's overall workforce will decline to 55,900 individuals in 2014. Even with those moves, analysts predict next year will one of the hardest for Peugeot in recent memory.

While 2012 saw the automaker liquidate some assets to maintain its cash reserves, that won't be an option next year. The company has been burning through those funds at a rate of around 200 million euros per month, and has announced its net debt will be somewhere around 3 billion euros at the end of 2012. In response, Moodys cut the automaker's long term debt rating to three levels below investment grade. In October, the French government voted to give Peugeot up to 7 billion euros in new bonds, and the measure should be fully adopted by December 19.

Peugeot to axe 1,500 more jobs as Euro sales funk deepens originally appeared on Autoblog on Thu, 13 Dec 2012 09:01:00 EST. Please see our terms for use of feeds.

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Coda Automotive undergoes "massive layoffs" *UPDATE

Sebastian Blanco — Tue, 11 Dec 2012 16:14:00 EST

Filed under: Sedan, Hirings/Firings/Layoffs, Earnings/Financials, Electric

Plug In Cars is reporting that there have been "massive layoffs" at California electric vehicle startup Coda Automotive. Apparently, more than 50 employees, "including a substantial part of its sales and marketing staff," were let go according to an anonymous source. The source said the situation was a "real mess," and that, "They just cut everybody they possibly could."

That things have come to this is perhaps not exactly a surprise. Sales have been slow - not even 100 units of the company's $37,250 all-electric sedan have been sold since it went on sale in March, then there was a safety recall and reviews haven't been kind. Last week, the vehicle scored just two stars in frontal crash tests from the National Highway Traffic Safety Administration. We have reached out to Coda to confirm Plug In Cars' report, but have yet to hear back.

*UPDATE: Coda sent us this statement, from Forrest Beanum, SVP of Government Relations & External Affairs:

CODA has released approximately 50 employees or 15% of our workforce across all functions to streamline our operations and right-size the Company. The Company is taking this action to better position our business going forward. We remain committed to the continued development and distribution of our products. The quality and safety of our products is of paramount importance. CODA vehicles meet all applicable U.S. Federal Motor Vehicle Safety Standards (FMVSS) and achieved an overall 4-star rating in National Highway Transportation Safety Administration (NHTSA) testing.

Coda Automotive undergoes "massive layoffs" *UPDATE originally appeared on Autoblog on Tue, 11 Dec 2012 16:14:00 EST. Please see our terms for use of feeds.

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Mazda to axe 25% of jobs in U.S. and Europe

Zach Bowman — Fri, 01 Jun 2012 16:58:00 EST

Filed under: Europe, Hirings/Firings/Layoffs, Earnings/Financials

Automotive News Europe reports that struggling Japanese automaker Mazda is set to cut a total of 250 jobs in the U.S. and Europe. The cuts, originally reported by Japan's Nikkei, come as part of new reorganization efforts and represent 25 percent of the company's staff in both markets. Mazda has registered losses for the past four years due in part to slow sales and a stronger yen. As a result, the company is looking to tighten its belt around the world.

Mazda will slim its workforce to under 200 workers at a subsidiary in Germany, while the manufacturer's sales staff in California and Michigan will fall to around 550 employees. The news comes on the heels of a buyout last month that saw 107 U.S. employees leave voluntarily. Currently, Mazda has no plans to cut its Japanese workforce, though some reorganization may take place on the home front in the coming months. Those efforts are largely expected to consist of moving workers from satellite offices in Tokyo and Osaka to the home base in Hiroshima.

Mazda to axe 25% of jobs in U.S. and Europe originally appeared on Autoblog on Fri, 01 Jun 2012 16:58:00 EST. Please see our terms for use of feeds.

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GM to axe 100 R&D positions

Chris Tutor — Tue, 01 May 2012 16:30:00 EST

Filed under: Hirings/Firings/Layoffs, Technology, GM, India

General Motors has confirmed it will cut 100 research and development positions at its Warren, Michigan, Technical Center and will close another R&D lab in Bangalore, India.

The cuts are about a 25-percent reduction in the Warren facility and are part of a "global restructuring."

"These moves will enable the organization to better focus on commercializing customer-focused innovation in a more efficient and cost effective manner," GM spokesman Dan Flores tells The Detroit News.

If they aren't offered new positions, affected workers will have 30 days to apply for other posts within GM before the layoffs commence in early June.

GM to axe 100 R&D positions originally appeared on Autoblog on Tue, 01 May 2012 16:30:00 EST. Please see our terms for use of feeds.

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Sluggish Fiat 500 sales triggering layoffs at Chrysler engine plant

Noah Joseph — Tue, 15 Nov 2011 13:31:00 EST

Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, Hatchback, Chrysler, Fiat

The Fiat 500 may have taken overseas markets by storm, but that isn't quite the case here in North America, where a delayed rollout, overly optimistic sales projections and related issues have hampered the retro supermini's sales. So much so, in fact, that Chrysler has reportedly had to stop production of the 1.4-liter engine that powers the Cinquecento until demand catches up to supply. As a result, it has had to lay off a portion of the employees that build it.

The exact layoff numbers are in dispute, but according to a new Automotive News report, Chrysler itself pegs the number at 30 while the United Auto Workers' local representative says it's more like 100. Fiat initially pegged its sales projections at 50,000 units this year, but as of just a couple of weeks ago, it had barely sold 16,000.

Will the advertising campaign with Jennifer Lopez and the launch of the 500 Abarth performance model help the Fiat's numbers climb? Only time will tell, but one way or another, it won't come fast enough for the workers waiting at home by the phone.

Sluggish Fiat 500 sales triggering layoffs at Chrysler engine plant originally appeared on Autoblog on Tue, 15 Nov 2011 13:31:00 EST. Please see our terms for use of feeds.

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Pininfarina exits carmaking business, plans to concentrate on design

Zach Bowman — Wed, 12 Oct 2011 09:31:00 EST

Filed under: Europe, Plants/Manufacturing, Design/Style

Reuters reports that Pininfarina will lay off 127 workers as the company shuts down its manufacturing business to focus more heavily on design and engineering. The Italian company points to the declining automotive market as the reason behind the move. The layoffs are expected to cost the company around €2.9 million, or $3.96 million at current conversion rates.

Pininfarina recently ended a joint venture with Volvo to produce the C70 in Uddevalla, leaving us to wonder where the model would be manufactured in the future. Meanwhile, Pininfarina is busily courting suitors to purchase a stake in the design firm as part of a debt restructuring agreement with the company's creditors.

French billionaire Vincent Ballore is one investor who has expressed an interest in purchasing part of the family-owned company. In the future, Pininfarina is expected to focus its efforts on contracted design and engineering work.

Pininfarina exits carmaking business, plans to concentrate on design originally appeared on Autoblog on Wed, 12 Oct 2011 09:31:00 EST. Please see our terms for use of feeds.

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Ferrari idling engine plants and laying off workers?

Zach Bowman — Wed, 12 May 2010 13:55:00 EST

Filed under: Performance, Europe, Hirings/Firings/Layoffs, Plants/Manufacturing, Earnings/Financials, Ferrari, Luxury

All is not well in Maranello. It would appear that the ripples of the global recession have finally reached mighty Ferrari. According to Bloomberg, the Italian supercar manufacturer has decided to cool production and send a healthy handful of workers packing amidst the announcement that production targets have been nearly halved for 2011. The report points the blame directly at Maserati. Ferrari's sister company has scaled back its orders for Ferrari-built engines, leaving both companies' coffers light.

Ferrari is contemplating drastic moves in order to maintain its profitability, including nixing 120 office positions and 150 factory jobs. The company also wants to idle its production facility for a full week - effectively laying off nearly 600 workers in the process.

Needless to say, the announcement has led to unrest, and workers walked out in protest for four hours yesterday. But numbers are numbers, and Ferrari has said that it will cut production from 20,000 units this year to 11,100. For what it's worth, last year, the company built 4,500 engines for Maserati - exactly half of what it built for 2008.

[Source: Bloomberg]

Ferrari idling engine plants and laying off workers? originally appeared on Autoblog on Wed, 12 May 2010 13:55:00 EST. Please see our terms for use of feeds.

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REPORT: Chrysler again offering early retirement to 23k hourly workers

Chris Shunk — Wed, 04 Nov 2009 09:20:00 EST

Filed under: Hirings/Firings/Layoffs, Chrysler, UAW/Unions

The Detroit Free Press is reporting that Chrysler is again offering early retirement packages in an effort to entice some of its 23,000 hourly employees to hit the road. The buyout packages are the first offered by post-bankruptcy Chrysler, though the terms of the buyouts are very similar to earlier offerings. The Freep is reporting that all workers with at least one year of service can walk away from their current job and receive $75,000 plus a $25,000 voucher. Those who wish to participate in this program will also continue to receive health benefits for an additional six months with the option to purchase coverage for a year after that.

Retirement-eligible workers age 55-59 with a combined 85 years of service or workers age 60 or older with at least 10 years of service can receive $50,000 plus a $25,000 voucher. A third package for workers between the ages of 55 and 62 with at least 10 years of service can receive immediate full retirement benefits. The workers have two weeks to decide whether or not to take the buyout/retirement packages, as the offer will be pulled from the table November 13.

Chrysler's newest buyout program comes as many facilities across the country are either closing or have already closed. Without a jobs bank to keep paychecks coming, we're guessing the take rate could be substantial in affected areas.

[Source: Detroit Free Press | Image: Bill Pugliano/Getty]

REPORT: Chrysler again offering early retirement to 23k hourly workers originally appeared on Autoblog on Wed, 04 Nov 2009 09:20:00 EST. Please see our terms for use of feeds.

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Ssangyong preparing to lay off nearly 40% of workforce by end of June?

Jonathon Ramsey — Fri, 24 Apr 2009 13:59:00 EST

Filed under: Hirings/Firings/Layoffs, Earnings/Financials

Ssangyong Motor Company is still struggling to gain traction after it ceased production late last year and slipped into receivership earlier this year. It restarted its production lines in February, but even the company director, Lee Yu-Il, says volume is still far too slow. To deal with matters, Gasgoo reports that Ssangyong is letting go of 2,700 workers, representing 37% of its workforce.

Yu-Il said the struggling Korean firm will run out of money at the end of June, and will need 100 billion won ($75 million US) if the company is broken up -- which makes us wonder how much the company needs to stay in business and question who would supply such funds in the face of a 50% drop in sales. With majority stakeholder SAIC refusing to get involved, Ssangyong's future is looking decidedly bleak.

[Source: Gasgoo]

Ssangyong preparing to lay off nearly 40% of workforce by end of June? originally appeared on Autoblog on Fri, 24 Apr 2009 13:59:00 EST. Please see our terms for use of feeds.

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Chrysler cuts 1200 workers in Windsor, 90,000 fewer minivans expected

Chris Shunk — Fri, 06 Mar 2009 07:57:00 EST

Filed under: Plants/Manufacturing, Chrysler, GM

Chrysler is cutting a shift at its Windsor minivan plant in response to slowing sales and a dreadful global economy. The plant will cease its third shift as early as June 24 and 1,200 workers will lose their source of income. The move will directly affect those with 13 total years of service or less. The shift reduction comes after the Pentastar temporarily shuttered the plant for half of December and all of January, followed by a two-weeks-on, one-week-off production cadence. The shift reduction will result in 90,000 fewer Chrysler minivans rolling off the line each year.

The Canadian Auto Workers union is reeling from this latest setback, but the 1,200 layoffs is just a fraction of the losses in Windsor over the past year. Windsor's unemployment rate is now at 10.9%, and the city expects to lose another 1,200 auto jobs when General Motors shutters its transmission plant next year.

[Source: The Star]

Chrysler cuts 1200 workers in Windsor, 90,000 fewer minivans expected originally appeared on Autoblog on Fri, 06 Mar 2009 07:57:00 EST. Please see our terms for use of feeds.

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Goodyear posts loss, laying off 5,000 workers

Chris Shunk — Wed, 18 Feb 2009 18:31:00 EST

Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing

When car sales dip like they have over the past few months, in many cases suppliers feel the pinch even more than the automakers. That's the case at Goodyear, where production is down by 19% and losses are beginning to pile up. The tire giant lost $330 million in Q4 2008, compared to a $55M profit in Q4 2007.

To help adapt to challenging times, Goodyear is tasked with reducing its operating costs by $700 million in 2009, and part of that reduction will come from layoffs. 5,000 salaried and hourly workers will be laid off, or 6.7% of Goodyear's global workforce. The workforce reduction comes on the heels of the 4,000 jobs that were already slashed in 2008.

The automotive sales nosedive has accelerated over the past six to eight months, but Goodyear, like the domestic auto industry, has been cutting back for some time. The tire giant has reduced costs by $1.8 billion over the past three years through layoffs, production cuts, and plant closings. Goodyear plans to further cut production by 15,000 to 25,000 tires to better align production with demand.

[Source: Automotive News - Sub. Req.]

Goodyear posts loss, laying off 5,000 workers originally appeared on Autoblog on Wed, 18 Feb 2009 18:31:00 EST. Please see our terms for use of feeds.

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GM, Ford job cuts closing in on 50% in U.S. - Chrysler not far behind

Chris Shunk — Fri, 13 Feb 2009 09:58:00 EST

Filed under: Trends, Hirings/Firings/Layoffs, Chrysler, Ford, GM

In 2002, General Motors had 177,000 employees in North America. By the end of 2008, that number had shrunk to 93,000, or 49% fewer employees than it had just six years earlier. GM plans to further cut its white collar workforce by 3,400 by May of this year, and the General is looking to cut 10,000 white-collar posts globally by the end of 2009. That will make nearly 100,000 GM jobs lost; enough people to fill the University of Michigan football stadium.

Ford and Chrysler have also resorted to heavy cuts in the face of shrinking market share and an industry-wide slowdown. Ford has seen its US workforce shrink to about 65,000 workers; 44% fewer than the Blue Oval employed five years earlier. Chrysler was leaner than Ford and GM were five years ago, yet they've still shed 32,000 jobs during that time. Chrysler now employs 56,600 employees, and the Pentastar has a package out to all of its hourly workers.

It's amazing to think that by June of this year, Detroit automakers will have shed nearly 200,000 jobs in under six years. As crazy as that number sounds, we don't think anyone will be surprised if a lot more workers lose their jobs before this year is over.

[Source: bnet]

GM, Ford job cuts closing in on 50% in U.S. - Chrysler not far behind originally appeared on Autoblog on Fri, 13 Feb 2009 09:58:00 EST. Please see our terms for use of feeds.

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REPORT: Nissan projects $2.9B loss, announces 20,000 job cuts

Chris Paukert — Mon, 09 Feb 2009 10:27:00 EST

Filed under: Trends, Hirings/Firings/Layoffs, Japan, Nissan, Earnings/Financials

Nissan hasn't posted an annual loss in nine years, but the automaker is poised to take a big hit on its 2008 earnings, and like the rest of the industry, it is scrambling to restructure. The Japanese carmaker is expected to report a $2.9 billion shortfall, prompting Carlos Ghosn and his team to chop 20,000 jobs - fully 8.5 percent of its employees worldwide. Some of the job losses will be arrived at through early retirement packages and the ending of temporary worker contracts, but most will be out-and-out layoffs. The personnel cuts will leave Nissan with 215,000 workers globally and take place now through March of 2010.

Nissan's planned cuts are markedly more aggressive than those employed by other Japanese automakers, suggesting that Japan's third-largest automaker is even more pessimistic about the potential for near-term economic gains. That appears to be particularly true in its domestic market, where the strong Yen and other factors have conspired to result in 12,000 of the planned job losses. Thanks for the tip, Karen!

[Source: Associated Press via ClockOnDetroit | Image: Akihiro I/Getty

REPORT: Nissan projects $2.9B loss, announces 20,000 job cuts originally appeared on Autoblog on Mon, 09 Feb 2009 10:27:00 EST. Please see our terms for use of feeds.

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Auto industry crisis leads to job losses even at strong companies

Sam Abuelsamid — Sat, 20 Dec 2008 12:24:00 EST

Filed under: Hirings/Firings/Layoffs

When the the Detroit automakers' financial crisis started getting more media coverage a couple of months ago, a study was released by the Center for Automotive Research estimating that the possible collapse of the industry could ultimately cost up to 3 million US jobs. That estimate is based on the several hundred thousand direct jobs, plus the affected suppliers as well as businesses in the vicinity of automotive facilities. The repercussions of the recent sales collapse are already being felt in southeast Michigan and elsewhere. Even traditionally strong companies without unions are paying the price for the current economic environment.

Take the case of TRW Automotive. TRW and some of its progenitor com,anies Kelsey-Hayes and Lucas, have long been among the strongest auto suppliers from a financial perspective. Unlike Delphi and Visteon, TRW has been consistently profitable over the years (Full disclosure: I worked at Kelsey-Hayes and later at TRW, after K-H was bought, from 1991-2007). Over the course of that time, there were only a couple of rounds of layoffs and there were never more than a few dozen people let go. Read to find out what has happened in 2008.

Continue reading Auto industry crisis leads to job losses even at strong companies

Auto industry crisis leads to job losses even at strong companies originally appeared on Autoblog on Sat, 20 Dec 2008 12:24:00 EST. Please see our terms for use of feeds.

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GM cuts 1,100 staff at Lordstown plant to meet slowing demand

Sam Abuelsamid — Sat, 08 Nov 2008 10:42:00 EST

Filed under: Budget, Hirings/Firings/Layoffs, Chevrolet, GM, Pontiac

Click above for more high-res shots of the Chevy Cobalt SS

Less than 2 months ago the headline here was GM ramps up Cobalt production to meet demand. It's amazing how quickly things change in this crazy environment. Just months after adding a third shift at the Lordstown, OH assembly plant where the Chevy Cobalt and Pontiac G5 are built, on Friday GM gave 1,100 employees at the facility layoff notices. The company isn't getting rid of the third shift but, it is slowing the build rate in line with current sales demand. Earlier this summer, GM was selling Cobalts as fast as they could build them and now all of a sudden, those sales have dried up. The spike was triggered by $4 gasoline, and even though gas prices have dropped to half that level, you might not expect sales to fall so fast. The real problem is the lack of available credit for financing. Most of the inherent customer base for cars like the Cobalt simply can't afford to pay cash for a new car. With credit increasingly hard to get, car sales have crashed almost across the board in October. Even the Honda Civic that sold 53,000 copies in May got just under 19,800 in October. Expect to hear more about slowdowns at other carmakers, including mighty Toyota and Honda, very soon.

[Source: Vindy.com]

GM cuts 1,100 staff at Lordstown plant to meet slowing demand originally appeared on Autoblog on Sat, 08 Nov 2008 10:42:00 EST. Please see our terms for use of feeds.

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Bob Nardelli to Employees: We're cutting 25% of remaining white-collar jobs

Damon Lavrinc — Fri, 24 Oct 2008 12:58:00 EST

Filed under: Hirings/Firings/Layoffs, Chrysler

"These are truly unimaginable times for our industry." That's how Chrysler CEO, Bob Nardelli, starts off a recent email to employees, just before dropping the bomb that the automaker intends to cut 25% of its salaried workforce beginning next month and continuing through the end of the year.

According to reports, Chrysler currently has 17,332 salaried workers, so 4,333 workers will be offered "voluntary" retirements and buyouts, while those who don't accept the automaker's offer, which includes "enhanced benefits" of cash and new vehicle vouchers, will be laid off. This is in addition to the 1,000 white-collar jobs Chrysler cut at the end of September.

Chrysler also plans to cut back on "all discretionary and overhead expenses and reduce capital expenditures not connected to major product programs." Nardelli admits that the company can't continue as it has in the past and that these tactics are an attempt to right-size the company to "reflect declines in volume." While we understand the trials and tribulations faced by Chrysler, Nardelli's email has a "this is going to hurt me more than you" ring to it. Judge for yourself after the jump.

Continue reading Bob Nardelli to Employees: We're cutting 25% of remaining white-collar jobs

Bob Nardelli to Employees: We're cutting 25% of remaining white-collar jobs originally appeared on Autoblog on Fri, 24 Oct 2008 12:58:00 EST. Please see our terms for use of feeds.

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Chrysler to lay off 300 salaried workers this week

Chris Shunk — Thu, 25 Sep 2008 18:02:00 EST

Filed under: Hirings/Firings/Layoffs, Chrysler

Chrysler has been struggling with sales declines more than most automakers during this challenging economic environment, and the some of that pain will transfer to its salaried workforce. The Pentastar is laying off 300 workers today and Friday due to the automaker's inability to reach its goal of 1,000 salary job reductions through retirements. All employees have been ordered to show up for work tomorrow regardless of any vacations or if they are scheduled to work or not.

Chrysler CEO Bob Nardelli told dealers yesterday that the Pentastar has lost $400 million so far in 2008, which is likely very bad news for Cerberus investors. There are very few feelings that are worse than losing a bunch of money, but we think going into work tomorrow with a real chance of being handed a box and being told to pack your things would be worse.

[Source: Automotive News subs req'd]

Chrysler to lay off 300 salaried workers this week originally appeared on Autoblog on Thu, 25 Sep 2008 18:02:00 EST. Please see our terms for use of feeds.

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Toyota to Tundra factory workers: Get thee to a park!

Jonathon Ramsey — Wed, 24 Sep 2008 10:31:00 EST

Filed under: Etc., Plants/Manufacturing, Toyota

As reported recently, even though Toyota halted Tundra production for a while, the company pledged not to lay off its workers. At a total cost of potentially $1 billion to the company, Toyota instead placed the employees in retraining and civic works programs during a Kaizen and Development Period.

What kinds of civic programs? One of them, in San Antonio, is called the City-Toyota Green Clean-Up Project, which has put up to 340 workers on the streets to "clean, paint, and plant." Factory staffers have painted curbs, picnic tables and trash cans, trimmed trees and plants, and cleaned up lots. While employees do want to get back to the factories, they're enjoying the time away and being able to give back to the city -- all the while earning their regular wages and benefits.

A second round of city improvement will begin next month. After that, Toyota expects to have all hands on deck again at the factory in November, building 2009-model-year Tundras. Thanks for the tip, Mike!

[Source: My SA News]

Toyota to Tundra factory workers: Get thee to a park! originally appeared on Autoblog on Wed, 24 Sep 2008 10:31:00 EST. Please see our terms for use of feeds.

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