Automotive Trucks information on net.

Tower Automotive Inc. said it will take a $289 million restructuring charge in the current quarter and cut 215 jobs in the United States and Canada in 2002. The company expects that the cash charges recorded will be recovered with operating savings by the end of its 2002 fiscal year.

The company also said it is looking to close its Milwaukee Press Operations plant, which would affect 490 hourly workers and 40 salaried staff. Tower Automotive said it is in talks with the union representing workers at the Milwaukee plant about the recommended plant closure, which would also result in a charge of $50 million to $60 million.

Of the $289 million in charges to be taken in the current quarter, Grand Rapids, Michigan-based Tower said $277 million is related to non-cash charges for goodwill and asset impairment. The company also said it will also take $203 million in non-cash charges for the impairment of goodwill and the carrying value of an investment.

The charges being announced are in addition to those associated with the closure of the company's Sebewaing, Mich. facility, which was announced in October 2001.

The company intends to continue the assembly of frames for the Dodge Ram and Ford Ranger trucks at its Milwaukee facilities.

Tower Automotive, Inc., produces a broad range of assemblies and modules for vehicle structures and suspension systems for the automotive manufacturers, including Ford, DaimlerChrysler, GM, Honda, Toyota, Nissan, Fiat, Kia, Hyundai, BMW and Volkswagen. Products include body structural assemblies such as pillars and package trays, control arms, suspension links, engine cradles and full frame assemblies.

# posted by Medical Information : 4:21 AM