Delphi to Lay Off 1,700 Hourly Employees December 1, 2000

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TROY, Mich. (Reuters) via NewsEdge Corporation -

Delphi Automotive Systems Corp. (DPH.N), the world's largest auto parts maker, said on Friday it would temporarily lay off 1,700 hourly employees, or 3 percent of its U.S. hourly work force, at its Michigan, New York and Ohio facilities.

``Delphi is moving quickly to adjust production to meet customer demand,'' J.T. Battenberg III, Delphi chairman, chief executive and president, said in a news release.

``Overall customer schedules in the automotive industry are softening, and we are taking steps to prepare our company for reduced volumes and intensified economic and competitive pressure in the coming months.''

Automaker DaimlerChrysler AG (DCXGn.DE) (DCX.N) also said it was idling some North American plants in December, hurt by a softening market and an excess of inventory.

U.S. auto sales have cooled in October and the first half of November from a record-setting pace earlier this year.

Delphi's latest move follows an announcement last month that it had laid off 101 employees from its vehicle steering systems operations in Saginaw, Mich., as a result of weakening orders from automakers.

The company said its layoffs would occur in the next three weeks. Employees would typically be laid off for one to two weeks, Delphi spokesman Steve Gaut told Reuters.

``This really just covers plans through balance of the year. We'll be reexamining the workforce needs and any additional customer schedule information on a weekly basis,'' he said.

Delphi employs about 54,000 hourly employees in 43 plants in the United States.

Shares of Delphi rose 1 percent or 3/16 at $14 on the New York Stock Exchange in early morning trade, near its year-low of $13-5/16. Its year high was $20-15/16. Daimler Chrysler rose 3.28 percent, or $1.26, to $39.70.

http://www.individual.com/story.shtml?story=c1201100.000

-- Martin Thompson (mthom1927@aol.com), December 01, 2000