Continental AGs U.S. subsidiary announced today that it will close its Huntsville, Alabama, electronics plant by year-end 2010 because the UAW failed to give contract concessions.
Union workers declined to open their current contract at the plant, which expires in 2012, said Continental spokeswoman Kathryn Blackwell. The plant employs 1,281 hourly and salaried workers, she said.
The UAW workers at Huntsville are the highest paid among Continentals U.S. factories. The plant was once a Chrysler electronics plant that came to Continental when the giant German supplier bought Siemens VDO Automotive in 2007. Siemens bought Huntsville from Chrysler in 2004.
The work at Huntsville, which includes production of powertrain and interior controllers, will be transferred to other Continental plants and technical centers in the United States and Mexico, the company said.
UAW officials were not immediately available for comment.
Continental ranks No. 3 on the Automotive News Europe list of the top 100 global suppliers with estimated worldwide sales to automakers of $25.01 billion in its 2008 fiscal year.