Lagging car sales hit other jobs, too

Turmoil in the auto manufacturing industry has not escaped Columbia.

About 200 auto workers lost their jobs when Summit Polymers closed its plant at 1550 E. Boone Industrial Drive in December 2006.

Another 250 employees are getting a reprieve Saturday but could be out of work if Collins & Aikman can’t find a buyer for its Columbia plant.

David Youngman, a Collins & Aikman spokesman, said two weeks ago that the plant could close on Saturday. However, the company decided to extend the potential closing date after evaluating the needs of its customers, Youngman said Thursday.

He declined to comment on what the new schedule will be, wanting to inform all employees first.

“We are in the process of informing our workforce of the revised schedule,” Youngman said.

The uncertainty that Columbia’s auto plants face stems from lagging national sales and drops at some major domestic manufacturers. Ford posted a 13.5 percent slide in sales last month, and Daimler Chrysler AG’s Chrysler Group slipped 8.3 percent, while GM had an increase of 3.7 percent, according to The Associated Press.

However, not all auto parts manufacturers in Columbia are cutting jobs.

“Companies that are doing either all their work or some part of their work for the foreign automakers, they’re actually doing pretty good right now,” said Bernie Andrews, president of Regional Economic Development Inc.

OTSCON, which supplies Honda, Nissan, Subaru of America and Toyota, has maxed out its Boone County plant with 250 workers. However, it has plans for expanding in the next five years.

“We are very fortunate that the vehicles we actually make parts for are the best sellers in their classes,” said Kathy Cowan-Smith, OTSCON director of human resources.

The Dana plant, another automotive parts manufacturer in Columbia, which produces axles for Ford, GM and Nissan, is in the process of adding 79 jobs. It is hiring workers for a new Ford line and a line it is moving from the company’s Buena Vista, Va., plant, which is closing, plant manager Tony James said. As of October 2005 the Buena Vista plant employed 275 people before it closed, according to a news release issued on Oct. 20, 2005. The new Ford line is a $24 million investment.

“It is not all gloom and doom,” James said. “There are some good things happening in Boone County.”

Dana is in the process of conducting interviews and has a couple hundred applications, James said. The plant already has hired some laid-off workers from Summit Polymers, he said.

Other auto plant workers may have to find other manufacturing jobs.

“Most of our employers, if you are a good worker and have some manufacturing experience, are going to train you,” Andrews said.

Although the Dana Co. is adding jobs in Columbia, the company is in bankruptcy and has closed other plants across the country.

“What we’re seeing here in the increase is someone else’s misfortune, basically,” Andrews said.

James said Columbia’s location and the high education level of its work force are why the Dana jobs are coming to Columbia instead of leaving.

“We have a really good location to our customer base,” James said.

Dana ships GM parts to Wentzville and Nissan parts to Tennessee and Mississippi.

Two other suppliers in the area, Gates Corp. and Industrial Textiles Corp., are least affected because they make parts not just for new cars, but also replacement parts, Andrews said.

“You’re always going to need to replace belts and hoses,” he said.

REDI has proposed changes to the Chapter 100 Revenue Bond Policy, which provides incentives to companies that locate in Columbia, to include manufacturing and more. The proposed addition broadens that to add the term “basic employer,” which are national companies that have offices or plants here but are not dependent on sales in Columbia. Those include manufacturing firms, regional corporate offices and research and development firms. In addition, REDI added a category called manufacturing reinvestment to encourage manufacturers to locate in vacated manufacturing buildings.

The changes also must be passed by the Boone County Commissioners. Andrews said he hopes to have the commission vote on it in the next couple of weeks.