CTNA to cut Charlotte production
Continental Tire North America Inc. (CTNA) will reduce tire production at its Charlotte, N.C., plant to between 17,000 and 18,000 units per day by next month.
The Charlotte plant currently produces 25,000 tires per day, say CTNA officials.
The action will include a work force reduction of 200 to 300 jobs.
"The reasons for the reduction are a substantial increase in inventory levels for certain passenger tire products and high process costs at the Charlotte plant," say CTNA officials.
CTNA Vice President of Human Resources Rick Ledsinger calls the decsion "our only option, as Charlotte is the highest cost plant for Continental Tire.
"It is critical that Continental continues to make changes necessary to be competitive in the U.S. tire market."
CTNA officials say the company will provide lay-off benefits to hourly workers in accordance with its current labor contract with the former United Steelworkers of America.