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Fiat Chrysler Parts Supplier IAC Cuts 500 Jobs at Iowa City Factory

Fiat Chrysler Parts Supplier IAC Cuts 500 Jobs at Iowa City Factory

(Dreamstime)

By    |   Saturday, 22 October 2016 12:01 PM

International Automotive Components Group SA plans to fire 500 workers in an Iowa City factory because of slowing demand for car parts, KCRG news reported.

The cuts will leave 160 hourly employees and about 40 salaried positions at the plant, which makes parts for Fiat Chrysler, General Motors, Ford, Chevrolet and Hyundai.

Fiat Chrysler is phasing out its Dodge Dart, which IAC supplied with interior instrument panels, door parts and center consoles.

“Fiat Chrysler is also moving the manufacture of the Jeep Compass and Patriot vehicles out of Illinois, placing it outside the shipping radius for IAC's Iowa City plant,” KCRG reported. “The company made dashboard and instrument panels for those vehicles.”

IAC’s international headquarters are in Luxembourg. The closely held company employs about 32,000 people globally and had sales of $5.9 billion in 2015, according to its website. Its North American operations are headquartered in Southfield, Michigan.

Faurecia North America Inc., the U.S. unit of the world’s eighth-biggest maker of automotive supplies, this month announced plans to cut 348 jobs with the closure of two plants in the Detroit area.

The cutbacks are the result of Fiat Chrysler’s decision to stop making the Chrysler 200 and Dodge Dart, according to a spokesperson cited by MLive.

“In January, FCA CEO Sergio Marchionne said the automaker is shifting its production focus in North America toward trucks and SUVs and away from smaller cars, in line with consumer demand,” the newspaper said.
 

 

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International Automotive Components Group SA plans to fire 500 workers in an Iowa City factory because of slowing demand for car parts, KCRG news reported.
Fiat, Chrysler, Iowa, job, cuts
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2016-01-22
Saturday, 22 October 2016 12:01 PM
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