JENNY PETER, Vincennes Sun-Commercial
jpeter@suncommercial.com
A slumping automotive market has forced Futaba Indiana of America Corp. to lay off another 50 employees, company officials announced Thursday.
Plant Manager Dan Stoelb said the layoffs were due, in part, to a recent significant cut in the production of the Sienna, Toyota's minivan.
In October, FIA announced that 63 workers who were temporarily laid off would not return to work for the Toyota parts manufacturer located in the U.S. 41 Industrial Park south of the city.
However, more than 30 of those employees had been brought back to work in the following months, according to Stoelb.
Things seemed to be looking up, then the announcement was made that Sienna production would be sliced by nearly half.
Stoelb said officials at FIA are trying to remain positive, but it didn't look like the industry would rebound soon.
"And we don't even know if we're at the bottom yet," he said.
But, he added, the plant itself isn't in danger of closing. "At this point, there is not any talk of that," he said. "It's not even something that's being considered."
FIA has promised to pay the terminated employees their holiday pay for Christmas and New Year's and has agreed to pay their insurance premiums - including the employees' shared cost - through the end of January. The company also has set up meetings with local employment and education resources, including WorkOne, Vincennes University and insurance representatives, to help the former employees.
Those who were terminated will be placed on a hiring list and if brought back within six months, will be hired at the full wage and benefits they were receiving before being laid off. At least 10 employees have been referred to another manufacturer, Stoelb said, and are likely to get jobs there.
Stoelb said the 300 employees that remain at the plant seem to be in good spirits and are optimistic about the future.
"Our employees are the best way to help us secure our future," Stoelb said. "Our people are the reason we're successful. In general, our people continue to be productive. It's really marvelous, and it says a lot about them."
Toyota announced in September that the manufacture of the Tundra pickup would be shifted from the Princeton plant to one in Texas, and company officials forecast that sales of both the Sequoia SUV and Sienna, models that are manufactured at Princeton for which FIA makes parts, would be low.
Those forecasts have since dropped even lower, Stoelb said.
But despite the layoffs, Stoelb thought Futaba's future hopeful. The company will supply parts to the Georgetown, Ky., plant for the Toyota Venza, a new model being introduced this month, and workers also will be supplying parts for the Highlander, which will be produced at the Princeton plant next year.
Also, a redesigned Sienna will be launched next fall.
"What we hope to do is get stabilized so we don't have to do any more layoffs," Stoelb said. "Our focus must be on the future now, and Toyota will still be dominant in the market."
FIA began operations in the industrial park in early 2003, with 75 employees in a 235,000-square-foot facility. Within five years, the plant had almost doubled in size and had increased its work force to about 500 employees.
In April, FIA was named the Knox County Chamber of Commerce "Industry of the Year."
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