Bendix announces layoffs for Kentucky plant
Nov 1, 2006 2:06 PM
The January 2007 launch of the Environmental Protection Agency’s stricter engine emission standards, coupled with the extensive truck pre-buy in advance of this action, has resulted in a significant layoff at Bendix Commercial Vehicle Systems LLC Frankfort KY facility, according to information from Bendix.
A total of 125 employees (123 hourly and two salaried) will be impacted by the layoff. To meet customer demand in 2007, 95 employees (68 production and 27 salaried) will remain at the facility, a nearly 57 percent reduction from 2006 staffing levels. The layoffs are effective January 2, 2007.
The effects of the new regulations and the pre-buys are expected to drive down demand for new vehicles and have a significant impact on original equipment truck manufacturers and their suppliers, including Bendix, the company said.
Original equipment manufacturers that use the air compressors built by the Frankfort facility are projecting an approximately 40 percent decline in truck production in 2007, coupled with a comparable engine build reduction. This combination is expected to bring the demand for engine-related components, like compressors, to a trickle beginning in January, Bendix said.
