Auto woes hit two more local companies

By JIM MEENAN, Tribune Staff Writer

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By Beth Boehne

Story Created: Jan 6, 2009 at 6:01 PM EST

Story Updated: Jan 6, 2009 at 6:03 PM EST

The economic cycle of a recession affecting sales grabbed two more area companies, costing more than 100 people their jobs.

Bob Kuenning, vice president of manufacturing for Nishikawa Standard Co., said Tuesday that the company is laying off nearly 50 people each at its plants in Topeka and Bremen because of "slower sales."

The company makes rubber weather strips for automobiles.

"It’s just a tough economic environment, and we are trying to get through it," said Kuenning.

In South Bend, Schafer Gear Works, laid off eight people Monday.

The company manufactures gears and machine components. Including the work done at two other Midwest sites, it serves customers in the automotive, off-highway equipment, power transmission, medical, mining and other industries.

"This is not a cut in normal operations," stressed Stan Blenke, executive vice president for Schafer Gear Works. The company had increased its workforce in 2008 in anticipation of future growth, he said. "But with the downturn of the manufacturing economy we had to make adjustments."

About 80 people remain employed by the company located on Nimtz Parkway in South Bend.

Blenke did not rule out calling the workers back at some point.

"A few of our potential business customers have delayed programs," he said. "If the economy turns around and those come back, there is a good chance some will be called back."

Kuenning said he did not know if the people would be called back to work at Nishikawa in the future.

"It just depends on the automotive market," he said.

With fewer people buying cars, be it because of consumer confidence, amid a recession or the credit crunch, less automobiles are being produced, resulting in less of a need for what Nishikawa Standard Co. produces.

Nishikawa’s layoffs will become effective Jan. 12. More than 300 people will remain employed at the Bremen facility and more than 250 in Topeka.

Nishikawa is a joint venture between Nishiwaka Rubber Co. of Japan and Cooper Standard Automotive Co. in Nobi, Mich.

Hundreds of local jobs have been lost in the area because of the downturn in the auto industry over the past several months, and that does not include the thousands who have lost jobs in the recreational vehicle industry.

Staff writer Jim Meenan:
jmeenan@sbtinfo.com
(574) 235-6342

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