Anderson In For Double Whammy?

ANDERSON, Ind. January 13, 2003; The AP reports that auto-parts maker Delphi Corp. plans to re-evaluate its ignition production operation in Anderson in an effort to return it to profitability.

If the effort does not succeed, Delphi, the world's largest auto parts supplier, could take steps that include closing or selling the 800-employee operation.

Delphi, based in Troy, Mich., said Friday that the ignition operation was among the business units it was placing in its Automotive Holdings Group, a separate division of underperforming businesses. Delphi placed 10 such business units in the division on Friday.

A generator assembly operation in Anderson was placed in the division in October 2001, and Delphi later announced that the operation was in the process of winding down.

Delphi's two operations in Anderson have a total of about 1,400 hourly and 100 salaried workers.

Brad Jackson, a Delphi spokesman, said nothing has changed with the plans to phase out the generator operation.

"The AHG will be focusing increased management attention on the ignition production," he said. "Placing the ignition production in the AHG doesn't mean there will be an announcement concerning the operation."

The goal is to bring the plant back to a profitable operation as quickly as possible, he said.

"Each site will have their own plan to improve operations," he said. "There is no specific timeline at this point.

"What this means is that you are underperforming product lines or sites, and need some attention."

Delphi is a former General Motors Corp. subsidiary that was spun off in 1999 and is North America's largest auto-parts maker.

Further job cuts would hit especially hard in Anderson. On Tuesday, another auto parts maker, Delco Remy International Inc., said it will close its starter- and alternator-manufacturing plants in Anderson and lay off 400 workers.