By Ken Hartman, Times staff reporter
Effects of the auto crisis have been felt nationwide in recent months.
That has been especially true in Clinton County where the auto industry employs a huge chunk of countians.
Two automotive plants dominate the area landscape - Subaru of Indiana Automotive Inc. in Lafayette and Chrysler in Kokomo. Subaru is faring well, but Chrysler, on the other hand, is struggling and has been forced to layoff workers.
"We have had no layoffs and we have no plans to do so," SIA Senior Vice President Tom Easterday said. "The reason for that is we've been able to be more flexible with our work schedule. We have reduced our assembly line speed and we have scheduled some half days. We're kind of in a unique situation."
Easterday said Subaru's market value rose from 1.4 percent in 2007 to 1.9 percent last December.
According to Easterday, 16.2 million cars were sold in the United States in 2007 and 13.2 million in 2008. Analysts have said those numbers are expected to drop to between 10.5 and 12 million this year.
"It's going to depend on when the recovery of the economy will occur," Easterday said. "I think toward the end of this year and next year, we'll start to see some improvements."
Easterday noted that NHK Seating of Frankfort, which manufactures, assembles and distributes seating and other parts for the Japanese Automotive plants, is one of Subaru's largest suppliers and is "central to our production."
NHK is one of four industrial park plants that have ties to the automotive industry. The others are Federal-Mogul Corp., Donaldson Co. and NTK General Axle Corp.
As of last April, SIA employed more than 2,800 people and company officials said those numbers are still the same.
SIA Corporate Communications Group Leader Jennifer McGarvey said 51 percent of company employees are from Tippecanoe County, while Clinton County residents make up 10 percent of its work force.
Greater Lafayette Commerce President and CEO Joe Seaman said Subaru is the number one manufacturer in Lafayette and ranks second behind Purdue University as far as the number of people it employs.
"They (Subaru) have been doing very well," Seaman said. "Their sales are up 3 percent from a year ago. They are an employee-oriented company with an outstanding benefits package."
Jeff Maxwell, who lives just outside Mulberry, has worked at the plant for 19 1/2 years. For the last four months, he has been working in the paint inspection and repair department. Prior to that, he worked in the quality department, inspecting the vehicles for imperfections after they were fully processed.
Asked what makes Subaru such an attractive workplace, Maxwell said, "One of the really nice things is we have health and dental benefits at no cost, a great retirement and 401K program. The opportunity to move into different areas of the plant is also available. I feel like I've learned quite a bit about the auto industry since I've been here."
Maxwell also sees the auto industry making a recovery.
"I think the auto industry will pull out of the situation we're in," Maxwell said. "It seems like we go through a cycle like this every 10 to 20 years or so. It's a very hard time for people to go through who are involved in it.
"We (Subaru) put out a high quality vehicle and are proud of what we put out," he added. "We believe our company will continue to grow in the next few years."
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