TRW report warns shareholders of shutdown three months ago
Thu, 19 Dec 2013 00:07:22 GMT —
We're learning more tonight about 600 workers who are set to lose their jobs after a Saginaw automotive supplier decides to close its doors.
Contract disputes between TRW and General Motors is forcing the automotive supplier to shutdown their braking supply plant in Saginaw.
TRW made the announcement that they are laying off 600 workers in February on Tuesday.
But in these reports from TRW to investors about the decision shutdown the plant is not new information. It's a financial move that has been pending since September.
Form 8-K from TRW on September 13th 2013 is a broad form used to notify investors of any material event important to shareholders.
It states the company is terminating an agreement with a major customer pertaining to certain North American brake operations.
Economics Professor Tim Nash is following TRW's termination of what they call a major customer.
"TRW has been a very large supplier of brakes and rotors for general motors," said Nash.
A TRW spokesman says the 600 jobs listed to end February 16th are of employees making general motors brake components.
90 days have passed since TRW's termination notice in September, in which their report says business may be terminated.
"This will have a negative effect to Saginaw and the surrounding area probably close to a hundred million dollars," said Nash.
TRW says before taxes the termination will cost them about $700 million.
"The final notification that that agreement is null and void has not been made public," said Nash.
Because of the contract disputes TRW is moving ahead with plans to close the plant, but could stay open if the two parties come to an agreement.
Since supporting GM's $1.3 billion investment in Michigan on Monday, the governor's office says it is not their role to comment on the layoffs and termination possibly involving general motors and TRW.