Delphi axes 200 jobs, vows to forge ahead

By Don Shilling

WARREN — Delphi Packard Electric is cutting 200 local salaried jobs because it doesn’t see vehicle sales bouncing back anytime soon.

Employees were told Monday that those being let go would be notified sometime this week, said Rachelle Valdez, a Delphi spokeswoman. The jobs are being eliminated May 1.

About 17 percent of Packard’s 1,175 salaried workers in the area are losing their jobs. They work at its office and plant complex on North River Road and at offices and plants elsewhere in the region.

About 50 other salaried jobs are being cut at Packard’s offices in other parts of the country.

Valdez said the cutbacks do not lessen the local operations’ role as the design and engineering center for Packard’s North American operations.

The division will continue to innovate and develop new technologies to improve vehicle safety and functions, she said. One of these new technologies includes work with hybrid vehicles, she said.

Packard produces wiring harnesses and related components for vehicles. It is a division of Michigan-based Delphi Corp., which has been operating under bankruptcy protection since 2005.

Fewer vehicle sales by Delphi’s customers mean that the auto supplier has to trim its work force, Valdez said. Each of Delphi’s divisions has been handling its own reductions in staffing.

Valdez said Delphi expects U.S. vehicle sales to be down for some time as the recession lingers.

The company is projecting the annual rate of U.S. vehicle sales to be about 10 million for the near future. Sales reached 16 million in 2007 but have slowed drastically since the collapse of credit and stock markets last October.

“We’re trying to make sure we move quickly to align our resources so we can remain competitive,” Valdez said.

The local cuts are being made in a variety of areas, including engineering, sales and purchasing.

Packard executives are evaluating how business functions can be combined and how each employee’s skills fit into consolidated operations, she said.

Employees who are let go will receive severance pay based on their years of service. Valdez said she didn’t have information on how much those packages would be.

Packard’s salaried employment has declined only slightly since Delphi filed for bankruptcy. It had about 1,300 salaried employees in 2005. However, Packard had 2,250 salaried workers in 1996.

Packard’s hourly employment in the area also has been slashed. When Delphi filed for bankruptcy, it had 3,800 employees. It now has 750 and large parts of the North River Road complex are vacant.

Local plants that remain produce cable and plastic and metal parts for wiring harnesses.