BorgWarner to shut down plant, eliminating more than 780 jobs

MUNCIE -- Auto parts maker BorgWarner, Inc. will close its plant in the city, costing 780 people their jobs, the company announced Thursday.\nIt is the third major Indiana auto parts plant to announce closings this year, costing nearly 2,700 jobs.\nAuburn Hills, Mich.-based BorgWarner said its Muncie operation will close by April 2009, when the current contract with United Auto Workers Local 287 expires. On Dec. 18, workers unanimously rejected the request to open contract negotiations. Company officials said they expect the work force to be gradually reduced as demand for products decreases.\nBorgWarner's Muncie plant has struggled in recent years as its main product line -- transfer cases for Ford Motor Co. transmission systems -- were in less demand due to declining Ford truck sales, officials said in a fourth-quarter earnings statement.\nThe company, which was formed in 1928, might be best known for providing trophies to winners of the Indianapolis 500.\nIt is more bad news for Indiana workers, as last week, Visteon Corp., said it would close its Connersville plant Sept. 1, idling 890 workers. Last month, Pendleton-based Guide abruptly closed a taillight plant, affecting 1,000 employees.\nThe BorgWarner announcement came as the company said European sales were strong while North American sales were down.\n"Deterioration of our business in North America drove strategic restructuring activities," Tim Manganello, company chairman and CEO, said in the statement. "The process of stabilizing our business in North America, while difficult, has left us a stronger, leaner company better equipped to manage the dynamics of that market."\nThe company makes components and systems for vehicle powertrains worldwide. It has 63 locations in 18 countries.