CTNA addresses questions about Charlotte plant
Continental Tire North America Inc. (CTNA) has asked workers at its Charlotte, N.C., tire plant to accept a 35% cut in pay and benefits in an effort to reduce costs at the factory. Production could be reduced at the plant if the company's request is rejected. A CTNA spokesperson recently answered a number of questions from moderntiredealer.com about what could happen next at the facility, which CTNA says is its most expensive plant to operate.
MTD: If workers accept the 35% cut, how much money will CTNA save?
CTNA: $32 million.
MTD: If they accept the requested cuts, could CTNA ask them to take even more cuts in the future?
CTNA: If the employees accept the company's proposal, CTNA believes the Charlotte plant will be cost competitive with other plants within the Continental organization.
MTD: If CTNA stopped production in Charlotte, how long would the stoppage last?
CTNA: No decision has been made to further reduce or suspend tire production at the Charlotte plant.
MTD: Would production be temporarily shifted to other Continental plants during a stoppage in Charlotte?
CTNA: If the decision is made to further curtail tire production in Charlotte (note: production in Charlotte was reduced -- reportedly by 17,000 to 18,000 units per day -- earlier this year), CTNA would continue to service its customers' needs from other Continental plants.
The spokesperson did not comment when asked if there's a chance that CTNA may close the Charlotte plant entirely.