Kongsberg officials said the decisions were a result of the "global automotive market collapse" that has resulted in a steep drop in demand for automotive components especially in North America.

Kongsberg officials have said a lot, most of it is a bunch of hogswallow.

The Businessweek piece goes on to say:

Kongsberg said its Van Wert, Ohio facility will close sometime in the summer and its production will be transferred to the company's Nuevo Laredo, Mexico facility, eliminating about 105 jobs.

The company said it also plans to move its Haysville, Kan. facility's production to its facility in Matamoros, Mexico. The Haysville facility will also close sometime in the summer, affecting about 100 jobs, Kongsberg said.

Not a problem. When Kongsberg decideds that Mexico is too expensive, they'll move to Poland, Haiti, India, maybe back to the US, you know where ever the taxes are cheap and the workers are so desperate they'd crawl all over themselves to get the jobs. Cause in the end, they're really just greedy bastards.

And why do I call them greedy bastards, well, because while they talk about the poor auto market from one side of their mouth, they accept a huge German contract out of the other side.

Kongsberg Automotive has booked an order valued at MEUR 18 (MNOK 151). The new business includes delivery of Seat Heat to the European market. The contract term is 7 years with production start in 2010.

The seat heaters will be manufactured at Kongsberg Automotive's plant in Pruszkow, Poland.

The customer is a German automaker and one of the world's premier manufacturers of passenger cars.

Ah, yes, Poland. This is the operation begun by closures of Amotfors, Sweden. But don't take my word for it, here's what Kongsberg had to say:

Kongsberg, 8 December 2008.

Kongsberg Automotive (KA) has booked an order valued at MEUR 4,3 (40
MNOK). The new business includes delivery of Seat Heat to the Russian
market, where a German automaker is preparing the launch of a small
sized car.

"The customer is one of Europe's leading carmakers and this contract
represents a door-opener to the emerging Russian automotive market",
says Hans Peter Havdal, President of Automotive Systems at KA.
"Further, this contract is the first ever to this particular
carmaker, and we expect new business opportunities to follow as a
result of this award", he concludes.


###

Kongsberg Automotive is headquartered in Kongsberg, Norway and has
more than 50 facilities in 20 countries on all continents. Kongsberg
Automotive, with revenues of about EUR1 billion and over 9.500
employees, provides system solutions to vehicle makers around the
world. The product portfolio includes gearshift systems, cables for a
wide variety of applications, fuel lines, tubing and hoses,
couplings, clutch actuation, stabilizing rods, seat heaters, seat
ventilation, lumbar supports, head restrains, arm rests, steering
columns, pedals, electronics and displays. Find more information at
www.kongsbergautomotive.com.

Yeah, right, market is down, so we have to close Van Wert (despite an illegal lockout) and we will have to close operations in Kanasas (another 100 jobs) because we have to move those operations into Mexico. It's just business, after all. Just business. Greedy fucking bastards.

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Somehow, I missed this news of TWO more plant closures in the US care of Kongsberg Automotive and their Greed:

Kongsberg, Norway, April 18, 2008 - Kongsberg Automotive, a global supplier of automotive, commercial and industrial products, today announced that they are restructuring their Interior Systems operations in North America.

Production at their Westland, Michigan facility will be transferred to an existing plant in Mexico.

The Westland facility today produces lumbar support assemblies for the automotive market. This production will be transferred to the Kongsberg Automotive facility in Reynosa, Mexico. The Westland facility is expected to close in the autumn of 2008.

Another restructuring project is to transfer the current production of Interior Systems parts from Willis Texas to the Kongsberg Automotive plant in Matamoros Mexico. This is also scheduled to be completed during 2008.

All together 120 people are affected by this transfer. The Willis plant will however continue manufacturing of other products within the Kongsberg Automotive portfolio.

"This restructuring will better align us to market needs and improve our overall competitiveness" said Olav Volldal, CEO Kongsberg Automotive Holding ASA. "Our recent acquisition of Teleflex's GMS Division has created a need for facility consolidations and we are pursuing a low cost footprint in North America."

That last paragraph is the same crap they've been selling for years now in their Scandanavian plant closures so they can move production to new facilities in Poland, despite the move COSTING the company MILLIONS.

I know, they're looking at LONG TERM issues, and losing on short term instead. Whatever. In the end, it's still all about greed. If it weren't, they wouldn't be bussing in SCABS in Van Wert Ohio.

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For the past 12 days, Canadian autoworkers have blocked the GM headquarters in Oshawa, Ontario. A Canadian court ruled that the blockade needed to end because it was disrupting GM's work. Interesting enough, those execs were actually working from home. Nice, huh? United Press International noted what Oshawa faces:

The union claims 2,600 jobs in the city will be lost by the closure and accuses the company of bargaining in bad faith recently when workers agreed to pay freezes. GM Canada said it was unaware of Detroit's decision to close the plants.

Did you see that last line? Let me repeat it:

GM Canada said it was unaware of Detroit's decision to close the plants.

Sweet, they didn't even bother to tell their Office!!

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My dad told me this weekend that some of his parts suppliers and buyers are shutting down their operations in Mexico and moving back to the States and into Canada.

Okay, I’ll bite, “why Dad?”

“Because of bribes. The suppliers and buyers have told me that they’re tired of trying to get things done when you have to bribe everyone to get it done. And if you don’t bribe all the right people, the workers don’t show up to produce anything at all.”

My dad works in the steel industry and supplies the kind of equipment used in major manufacturing and construction. One of his supplier is planning a move to Canada soon and another into South Carolina if they get the land they want. So, when I read about the GM closure, I wasn’t too surprised to see a Mexican plant listed in a CNN report

The plants to be closed include two U.S. facilities - Moraine, Ohio and Janesville, Wis. - along with plants in Oshawa, Ontario and Toluca, Mexico.

The Moraine Ohio plant makes SUVs:

The Moraine plant employs about 2,500 workers and produces the GMC Envoy, Chevrolet Trailblazer, Saab 9-7X and Isuzu Ascender.

The plant has been cut from 4100 employees in 2006 to only 2500 now and those employees are now left to find new jobs or move out of the Dayton area.

The plants at Moraine and Janesville are the most vulnerable, according to some industry analysts.

Greg Gardner, an analyst with the Oliver Wyman Group, said both plants are a distance from parts suppliers. Plants in Texas and Mexico can easily satisfy demand for big SUVs, while GM may stop building mid-size SUVs in a few years, Gardner said.

IUE-CWA local 798 represents workers in the Moraine plant and had this to say to GM:

The workers at Moraine assembly have a long history of progressive contracts that have led to this plant being named the most productive in the country. Through unprecedented work rule flexibility and an unmatched commitment to quality, the workers at Truck and Bus have consistently delivered a profitable product.

We understand that outside forces, particularly high fuel and health care costs, are negatively impacting the auto industry. But to break the covenant with these workers is unconscionable. GM should recognize the loyalty and skill of the Moraine workers with a new product placement. GM could reward the community's long-time support by working to rebuild the plant's future, not abandoning an already hard-struck area. I hope that GM is not out of fresh ideas and new products. They owe Moraine workers and the community.

snip

IUE-CWA will work as hard as possible and reach out to all potential allies to try to save this plant. If GM still wants to make an excellent product at a profit in the United States, we can do it in Moraine. On a parallel path, however, we will fight equally as hard to ensure that our members and retirees get all they deserve and all they have earned after years of working for GM."

After having been laid off since March and only having returned to work a few weeks ago, this latest announcement from GM really does just say screw you to their workers. I wonder if Oshawa, Janesville and Toluca are just as pissed by this news and feeling just as screwed. If I were a betting girl, I’d bet the answer is yes.

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I know this is coming as a SHOCK to everyone here, but Kongsberg has decide to CLOSE another plant. This one is in Sweden, again. Wonder if they’re moving those operations to the new Polish plant or somewhere with even fewer environmental laws and lower taxes. But hey, don’t take my word for it, take a read of ABN:

Kongsberg, Norway, April 23, 2008 - Kongsberg Power Products Systems AS, which is a subsidiary of Kongsberg Automotive Holding ASA, has declared it is considering proposals regarding closing the factory in Märsta, Sweden and intends commencing negotiations with the Unions. The factory in Marsta has 54 employees, and the workforce will be informed at meetings today. The facility today produces heavy duty cables, pedals, hand controls, hydraulic valves and electrical components to the Commercial Vehicle and off-highway vehicle market. The potential closure of the factory may lead to a transfer of production in Märsta to existing Kongsberg Automotive locations within Europe. Kongsberg Power Products Systems AB will continue to service its customers through its operations in Ljungsarp, Sweden. The potential closure is due to the company's need for realizing cost savings in order to improve overall competitiveness. "To Kongsberg Automotive, it is decisive that we find ways to optimize our production in order to stay competitive in an ever increasingly competitive global market. The potential transfer of business from Märsta will better align us to market needs and restore profitability for the Division to an acceptable level", says President for Power Products Systems, Jim Ryan.

I want you to take a look at the emphasized text. I bolded it for one reason, this is the theme for Kongsberg.

Closure of plants despite profitability in hopes for greater profitability down the road. Basically, it’s Greed for Greed sake.

So, I look to the locked out workers in Van Wert and I have to say, I’m not sure why I’d ever take a reduction in income to work for a company that treats it’s works like they’re disposable.

The profitability of any company is based on the production and frequently also the quality of work that is done on that company’s behalf. Well, all except Wal-Mart who seems to think they can do anything without recourse, but I digress.

Kongsberg Automotive seems to be of the mind that being profitable isn’t enough, they must better align to market needs so as to bring each Division up to their acceptable level for profitability. I wonder what that level is? And why it is that the people who helped to make the company profitable in the first place are the people reduced to nothing in the hunt for greater profits down the road, somewhere else.

Kongsberg Automotive seems hell bent on adding to their history of greed.

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