It appears Oxford’s loss is Mexico’s gain.
More bad news for Michigan’s struggling economy yesterday as the Eaton Corporation announced plans to close its automotive manufacturing facility in the village’s industrial park by April 2008.
Approximately 100 jobs will be eliminated as operations are moved south of the border.
‘There’s just not enough combined business to support, long-term, the operation of multiple facilities that produce similar products for similar customers,? said Jim Parks, a spokesman for Eaton.
‘This was a difficult decision,? said Chris Ostrander, general manager, Eaton’s Fuel Emission and Safety Controls business. ‘We believe, however, that this move will make us more competitive and strategically positioned to grow our business and serve our global customers.?
Eaton acquired the Oxford facility, located at 575 S. Glaspie St., when it purchased Saturn Electronics & Engineering, Inc.’s fuel components division back in May.
The Oxford facility primarily manufactures fuel containment valves, which enhance vehicle safety in the event of a rollover or crash, and fuel shut-off valves to prevent splash back and vapor release during refueling.
Chrysler and Ford are Eaton’s two largest customers, according to Parks.
As part of the Oxford closure, Eaton plans to move its manufacturing operations to an existing company facility in Reynosa, Mexico. Engineering, testing and prototype development will be relocated to the Eaton Innovation Center in Southfield.
‘Sixteen people from the facility here in Oxford will be moved to Southfield,? Parks said.
As for the other 100 employees, they will receive at least 60 days notice in advance of their positions being eliminated. Full-time employees will be offered Eaton’s severance benefits, which include help finding other jobs.
‘We realize this decision adversely affects many employees and we will work to provide appropriate resources to assist them through this difficult transition,? Ostrander said.
Parks said the company hopes to have the closure and move completed by April of next year, but it could be later.
‘We can’t put a definite date on it, but that’s what we’re targeting,? he said. ‘I don’t think it will go sooner than April.?
‘It’s a complicated thing to move. We have to build product banks up for the customers and then move the equipment, get it working again, get it approved.?