Chicago, Michigan -- Automotive supplier Visteon Corp. will close its Chicago plant next year, cutting 290 jobs as part of a restructuring plan.
Automotive Components Holdings (ACH), which is made up of former Visteon operations and controlled by former Visteon parent Ford Motor Co., will take over contracts for the work supplying Ford cars made in Chicago.
An ACH spokeswoman said the firm will make the parts using existing capacity at current plants in Michigan -- blow moulding fuel tanks in Milan and injection moulding cockpits and interior trim in Utica.
Visteon told state officials in Illinois it will eliminate half its workforce in Chicago by February, with the rest to be cut by June when the plant closes.
Visteon executives told analysts they expect that an ongoing slowdown in car production will result in a sales drop of 10 percent in the second half of 2006, compared with the first six months of the year.
The Detroit-based company will discuss details of a three-year restructuring plan in late October.
From Plastics News (A Crain publication)