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Catawba County axle maker cuts 141 jobs

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Getrag Web site

By John Dayberry | Hickory Daily Record

Published: January 6, 2009

MAIDEN - Getrag Corp. laid off 141 of its approximately 500 employees Monday.

The manufacturer of General Motors and Chrysler auto parts cited the continuing worldwide economic crisis as the reason for cutting its work force by nearly 28 percent.

Layoffs, which Getrag said are permanent, were made across all departments and included hourly and salaried employees, company spokeswoman Michelle Culver said.

Company officials said they regret having to take the action and will offer assistance to employees to help ease the transition.

"The current economic situation and the crisis in the American automotive market in particular forces us to adjust our organization to assure the long-term viability of our company," said Friedemann Strasser, Getrag's chief executive officer.

The nation's six largest automakers all reported December sales declines of more than 30 percent on Monday.

Of the six, Chrysler LLC took the biggest hit in December, with sales falling 53 percent from levels a year ago. GM reported a 31 percent sales drop in December.

The automotive Web site Edmunds.com predicted U.S. auto sales for 2008 will total just more than 13 million, down 18 percent from 2007 and at their lowest level since 1992.

Scott Millar, president of the Catawba County Economic Development Corp., said Getrag is an important employer in Catawba County, and that the job cuts will certainly be felt.

"We feel that there will be continued challenges in coming months due to the national and global economy," Millar said.

"Every local government is trying to maintain and create every job that it can."

The region's unemployment rates continue to climb, with the jobless rate in Catawba County reaching a five-year high 0f 8.3 percent in October.

November unemployment rates for N.C. counties are to be released by the state today.

Getrag has two plants in Maiden where it makes front and rear axles, rear drive modules and power take-off units for passenger cars and crossover vehicles.

The company opened in Catawba County in 1986 as Getrag Gears of North America. It changed its name to Getrag Corp. in 2001.

Based in Maiden, Getrag Corp. is owned by Getrag Getriebe und Zahnradfabrik Hermann Hagenmeyer GmbH & Cie KG of Germany.