Federal-Mogul Expands Existing Restructuring Plan in Response to Automotive Industry Downturn and 2009 Outlook
Estimated expense of an additional approximately $80 million through end of 2009
SOUTHFIELD, Mich., Dec. 19 /PRNewswire-FirstCall/ -- Federal-Mogul
Corporation (Nasdaq: FDML) today announced it has expanded its existing
restructuring plan announced September 17, 2008, in response to the continued
challenging conditions in the global automotive market. Federal-Mogul plans to
implement several initiatives designed to further consolidate, downsize or
close additional locations. These actions are expected to reduce the
company's global workforce by approximately 4,600 additional positions or
about 10 percent. The company is not disclosing the specific sites at this
time, pending further evaluation and consultations with appropriate parties.
The additional restructuring actions will begin during the first quarter of
2009. Preliminary cost estimates for the additional restructuring are
approximately $80 million through the end of 2009, and are in addition to
expense estimates included in the original plan announced in September 2008.
"We continue to take actions in response to the ongoing significant
downturn in regional markets and global industry outlook. These measures are
required to prepare the company for the unprecedented challenges in the
automotive industry," said Jose Maria Alapont, Federal-Mogul President and
CEO.*
About Federal-Mogul
Federal-Mogul Corporation is a leading global supplier of powertrain and
safety technologies, serving the world's foremost original equipment
manufacturers of automotive, light commercial, heavy-duty and off-highway
vehicles, as well as in power generation, aerospace, marine, rail, industrial,
and the worldwide aftermarket. The company's leading technology and
innovation, lean manufacturing expertise, as well as marketing and
distribution deliver world-class products, brands and services with quality
excellence at a competitive cost. Federal-Mogul is focused on its sustainable
global profitable growth strategy, creating value and satisfaction for its
customers, shareholders and employees. Federal-Mogul was founded in
Detroit in 1899. The company is headquartered in Southfield, Michigan, and
employs nearly 47,000 people in 35 countries. Visit the company's Web site at
www.federalmogul.com.
Forward-Looking Statements
Statements contained in this press release, which are not historical fact,
constitute "Forward-Looking Statements." Actual results may differ materially
due to numerous important factors that are described in Federal-Mogul's most
recent report to the SEC on Form 10-K, which may be revised or supplemented in
subsequent reports to the SEC on Forms 10-Q and 8-K. Such factors include,
among others, the cost and timing of implementing restructuring actions, the
Company's ability to generate cost savings or manufacturing efficiencies to
offset or exceed contractually or competitively required price reductions or
price reductions to obtain new business, conditions in the automotive
industry, and certain global and regional economic conditions. Federal-Mogul
does not intend or assume any obligation to update any forward-looking
statement to reflect events or circumstances after the date of this press
release.
CONTACT: Paula Silver - 248-354-4530
Jennifer Rass - 248-354-7502
* Please note accent over 'e' in Jose Maria Alapont
