A North Sydney auto parts maker laid off 17 employees this week, blaming the job cuts on declining sales in the U.S. car industry.
A slowdown at Precision Finished Components, the local division of Magna International Inc., could also signal problems for Atlantic <link _top>Castings Ltd.
Precision Finished Components is the tool and die plant’s major customer, Atlantic <link _top>Castings spokesman Sean Burke said Thursday.
“When their business is down, one can reasonably expect ours to decrease as well," he said. “But every company has (job) turnovers. . . . We don’t have all the details on it yet."
Mr. Burke said Atlantic <link _top>Castings has been looking to diversify into different markets since several private investors bought out the then-struggling firm last year. Executives have spoken with several companies in the southern United States, but Mr. Burke wouldn’t say whether Atlantic <link _top>Castings had actually started working with any of them.
“We have been trying to search out new business and now we’ve got some other irons in the fire," he said.
The North American auto industry has been on the decline for more than two years, forcing major players like GM and Ford to slash tens of thousands of jobs.
Magna International Inc. reported a US$215-million third-quarter loss this week. Co-CEO Don Walker told media outlets then that greater losses could lead to further restructuring.
The workers laid off this week at Precision Finished Components are believed to be senior-level employees, according to a source. CBC News reported that about 300 people are still working at the firm.
The recent layoffs show the effects of the global financial crisis trickling to the local level, Sydney-Victoria MP Mark Eyking said in a media release.
Mr. Eyking said Ottawa should help those laid off move into other jobs, as it did with former TrentonWorks employees.
“The federal government has to invest in innovation so that companies like Magna Powertrain PFC can be ready for new opportunities when the economy picks ups steam again," he said.
