Tecumseh Products to Close Acklin Stamping Plant
2 October 1998
Tecumseh Products to Discontinue Operations At Acklin Stamping in Toledo, OhioTECUMSEH, Mich., Oct. 1 -- Tecumseh Products Company (Nasdaq: TECUA, TECUB) has informed its Acklin Stamping Division Employees and the union that it intends to discontinue manufacturing operations in its Toledo, Ohio facility. Persistent problems with quality, timely deliveries and meeting customer requirements, as well as high operating costs forced the Company to bargain to: - Obtain substantial wage and fringe benefit concessions, and - Modify contractual provisions in an effort to increase productivity and flexibility; OR - Cease manufacturing operations at Acklin Stamping Division. Proposals for concessions and language changes were rejected overwhelmingly by the Union membership on September 30th and efforts are now underway to negotiate a close down agreement which will provide for an orderly transition, beneficial to all involved. The Company regrets the necessity for this action and will make an effort to soften the impact upon its affected employees.