Traverse City Record-Eagle

Charlevoix County

August 28, 2008

Area plant lays off 95 workers

By BILL O'BRIEN

BOYNE CITY -- LexaMar's automotive parts plant here laid off 95 workers and its parent company blamed the continuing downturn in the automobile market.

Local workers learned of the layoffs Wednesday afternoon. The company confirmed just over a week ago that it was looking at a major restructuring plan. Layoffs were effective immediately and impacted both hourly and salaried workers, and represented almost a quarter of the plant's estimated 400-person workforce.

A statement issued by Tracy Fuerst, a spokeswoman for Magna International of America Inc., LexaMar's parent company, said the layoffs were "a result of current automotive market conditions and a corresponding reduction in customer production volumes."

LexaMar manufacturers moldings and other accessories for automobile exteriors.

Magna also said it "intends to do everything possible to help place employees in other Magna family facilities and assist in this transition."

Magna spokesman Scott Worden said there were layoffs at several of the company's plants around the country, but didn't have an estimate on the number of impacted employees.

In its second-quarter financial statement, Magna reported its $434 million net income fell 9.6 percent from last year. The company projected "significantly reduced" 2008 light vehicle production volumes for North America.

Magna has around 82,000 employees at 241 manufacturing operations around the world, including 51 in the U.S.

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