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Visteon will close Eureka plant

Fri. September 25, 2009; Posted: 03:14 PM
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Sep 25, 2009 (St. Louis Post-Dispatch - McClatchy-Tribune Information Services via COMTEX) -- VC | Quote | Chart | News | PowerRating -- Visteon Corp. announced Thursday that it expects to cease production of vehicular interior components at its Eureka subsidiary by year's end.

Nearly 100 people are employed at the two-year-old plant. The workers were informed Thursday afternoon.

Company spokesman Jim Fisher acknowledged that the closing -- fallout from the likely shutdown of the Chrysler assembly plants in Fenton -- is inevitable. Visteon will make it official after the company and representatives of the United Auto Workers work out details on the fate of the factory's 77 hourly employees, Fisher said.

While approval of the union representing the workers is not required, Fisher said, Visteon plans to explore options with union officials. Discussions will focus on severance packages or possible transfer opportunities to other Visteon factories. Fisher said the company may offer transfers to the plant's 17 salaried workers as well.

The talks also will allow the company to share the details of the decision to move the Eureka operations to other sites with UAW officials.

"This difficult but necessary action reflects certain business realities and recent customer agreements related to the sourcing of particular products," Jeff Stevenson, Visteon's director of North American interiors, said in a prepared statement.

Chief among those realities, of course, was bankrupt Chrysler's decision to halt the production of minivans and Dodge Ram pickups in Fenton. Visteon opened its $20 million, 217,000-square-foot Eureka plant in June 2007, where the company produced door interiors, instrument panels and consoles for the Dodge Ram.

The Eureka plant, Fisher said, has been manufacturing instrument panels for General Motors products since Chrysler ended pickup production in Fenton in July. The company will supply parts to GM from another facility once the Eureka factory closes.

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