Auto parts supplier Superior Industries International Inc. said Tuesday that it is cutting its U.S. work force by 29 percent and closing a plant due to slowing truck and SUV sales.
Van Nuys-based Superior will close its Pittsburg, Kan., plant effective Dec. 19, which will cut about 600 jobs. To further reduce payroll, the company also canceled 90 open positions and will lay off an additional 65 workers at other locations. Some production from the Kansas plant will shift to other facilities. The company expects its severance costs will be $1.8 million.
Superior, which supplies aluminum wheels to most major U.S. and overseas automakers, said it is eliminating excess capacity because consumers are buying more fuel-efficient cars and fewer larger vehicles. Most of the products made at the Kansas plant are used on larger vehicles.
“We believe the move towards more fuel efficient vehicles is a permanent shift, not merely a temporary phenomenon,” said Chief Executive Steven Borick in a statement. “Superior’s goal is to prosper, not just survive, as we work through one of the most challenging periods in the history of our industry.”
Superior on Aug. 7 said second-quarter earnings jumped 58 percent as cost-cutting and other operating changes offset lower revenue. Last Friday, its board declared a quarterly cash dividend of 16 cents, payable to shareholders of record on Oct. 3.
Superior shares were down 8 cents, or less than 1 percent, to $18.77 in trading Tuesday morning on the New York Stock Exchange.