Chrysler to Keep Acustar, Will Sell or Close 4 Plants

Chrysler Motors Corp. said Thursday that it has decided not to sell its Acustar Inc. parts-making subsidiary but will close or sell four plants within the next 18 months.

The No. 3 auto maker said the four plants--Amplex Van Wert in Van Wert, Ohio, Trenton Chemical in suburban Detroit, Detroit Forge and Detroit Trim--employ about 2,000 people.

The United Auto Workers union said it was pleased by the decision but urged Chrysler to find ways not to close the four plants.

“We certainly welcome this announcement, since we have maintained all along that Chrysler is a stronger company with its own internal parts-making capacity,” UAW President Owen Bieber and UAW Vice President Marc Stepp said in a statement.

The proposed sale of the subsidiary, which had $3 billion in sales in 1987, had been vehemently opposed by UAW members who threatened plant-by-plant strikes.

“That played a role,” Chrysler spokesman John Guiniven said of the company’s decision. “(Workers) stated very strongly that they wanted to remain a part of Chrysler.”

Buys 70% of Parts

Workers at Chrysler plants throughout the company also had stopped attending management-union meetings and participating in other joint activities.

Last Thursday, more than 1,000 sign-waving workers protested the proposed sale outside Chrysler’s Highland Park headquarters.

Chrysler had said it was considering selling the subsidiary because it didn’t want to invest in the research needed to upgrade some operations. Chrysler already buys about 70% of its parts from outside sources.

“We looked at all the offers, took into account the feelings of our employees and decided not to sell,” Guiniven said.

Acustar, which employs about 28,000 people in the United States, Mexico and Canada, represents about a fifth of Chrysler’s worldwide operations.

The largest of the four plants is Detroit Trim, which employs 1,177 workers and makes trim for cars.

Trenton Chemical employs 189 and makes chemicals used in auto paints, Amplex Van Vert employs 333 and makes powered metal products and Detroit Forge employs 419 and makes forged parts.

Stepp had said the sale of the subsidiary would have threatened the job security of all Chrysler workers.

At least seven locals had voted to ask for strike authorization, including workers at Trenton Chemical.