Layoffs in the auto parts industry are nothing new. For most companies it is a part of normal business practice. But the thing that is different with Unite States Toyota and Union Carbide is the fact that it has asked the government for protection from the lay offs. The first step of this is for the company to win control of its suppliers. This is done through an Interment settlement process where the company goes into negotiation with its suppliers in an attempt to retain some of its most important dealers. The company has also asked the Department of Labor to investigate the Toyota layoffs to ensure they were not illegal.
The reason that the Union Carbide has asked the government for help is because the layoff numbers seem to be continuing to rise. In January the company laid off about 300 people, almost half of its total workforce. The other half are expected to be terminated on April 1st, the rest of its employees will start looking for new jobs as the car is phased out. The layoff in January was its first big decrease in over a decade. The layoff in March came after rumors of planned layoffs spread rapidly through the car industry.
If the Union Carbide does not negotiate well enough with the suppliers, it may find itself forced to shut down. It would be a sad ending to an era of fantastic service equipment means and affordable computer hardware. There are rumors that Apple is working on a brand new line of Mac mini’s which could be the beginning of a great resurgence. No doubt that will bring lots of orders for service equipment means gear. But how can Apple possibly handle all the manufacturing, shipping and labor costs when it has no personal merchandise to support the business?
Auto parts manufacturing may become more difficult in a struggling economy. Auto parts supply chain management software is supposed to help auto makers reduce waste by making buying decisions. It also should allow them to make informed decisions about where to source parts for their vehicles. But if parts manufacturers can’t make enough car parts, how will they be able to stay in business?
As the company downsizes, so does the scope of the products it can make. The production of parts might stop altogether. Or the company may decide to cease all auto-part production, closing its doors forever. Whichever course of action the company takes, the workers of the Lumber Liquidator will suffer. The workers, who have labored long hours for the company for over two years, will lose not only their jobs but the chance to build a future for themselves at such a hardworking company.
Auto parts are critical to every automotive manufacture and repair shop. Without parts the whole process of manufacturing and repairing cars breaks down. Auto body shops, automotive dealerships, and individual owners all rely on this crucial piece of equipment to do their job properly and reliably. Without it the equipment means no one could make or repair a car.