22nd
December 2008 - Federal-Mogul
Expands Existing Restructuring Plan in Response to Automotive Industry
Downturn and 2009 Outlook
An Additional 4,600
positions, or 10 percent of Workforce, Could be Affected
Federal-Mogul has announced
it has expanded its existing restructuring plan announced
September 17, 2008, in response to the continued challenging
conditions in the global automotive market. Federal-Mogul plans to
implement several initiatives designed to further consolidate, downsize
or close additional locations. These actions are expected to reduce the
company's global workforce by approximately 4,600 additional positions
or about 10 percent. The company is not disclosing the specific sites at
this time, pending further evaluation and consultations with appropriate
parties. The additional restructuring actions will begin during the
first quarter of 2009. Preliminary cost estimates for the additional
restructuring are approximately $80 million through the
end of 2009, and are in addition to expense estimates included in the
original plan announced in September 2008.
"We continue to take actions in response
to the ongoing significant downturn in regional markets and global
industry outlook. These measures are required to prepare the company for
the unprecedented challenges in the automotive industry," said
Jose Maria Alapont, Federal-Mogul President and CEO.*
About Federal-Mogul
Federal-Mogul Corporation is a leading
global supplier of powertrain and safety technologies, serving the
world's foremost original equipment manufacturers of automotive, light
commercial, heavy-duty and off-highway vehicles, as well as in power
generation, aerospace, marine, rail, industrial, and the worldwide
aftermarket. The company's leading technology and innovation, lean
manufacturing expertise, as well as marketing and distribution deliver
world-class products, brands and services with quality excellence at a
competitive cost. Federal-Mogul is focused on its sustainable global
profitable growth strategy, creating value and satisfaction for its
customers, shareholders and employees. Federal-Mogul was founded in
Detroit in 1899. The company is headquartered in
Southfield, Michigan, and employs nearly 47,000 people in 35
countries.
Source: Federal-Mogul Press Release