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LucasVarity cuts jobs
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January 29, 1999: 10:48 a.m. ET
UK-listed auto parts group will axe 970 workers at separate plants
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LONDON (CNNfn) - LucasVarity, the U.K. auto parts group on the receiving end of a $6.6 billion takeover bid from U.S. rival TRW, unveiled back-to-back streamlining initiatives on Friday that will result in the loss of nearly 1,000 jobs in company businesses on both sides of the Atlantic.
LucasVarity said it would cut 740 jobs at a Welsh joint venture it has with Sumitomo Corporation of Japan.
Lucas SEI Wiring Systems plans to eliminate the jobs as part of a shake-up of British operations, LucasVarity said in a statement.
Output will be transferred to other European plants, the company said. A customer support center will continue to employ about 100 staff.
Separately, Reuters reported, the company plans to close by early 2000 a braking plant in Cincinnati, Ohio, resulting in the loss of about 230 jobs.
The Ohio business makes brake parts primarily for Ford Motor, Honda Motor and Nissan Motor. Production is being shifted to Mount Vernon, Ohio, Koblenz, Germany and Queretaro, Mexico.
Shares in LucasVarity [LSE:lva] rose 1.25 pence on the London stock exchange to 291.5 pence.
Investors are also anticipating the prospect of a bidding war breaking out for the group, with rival U.S. components group Federal-Mogul thought likely to return to the fray with an offer topping TRW's.
--From staff and wire reports. 
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