Tenneco Moving H-D Exhaust Biz to Nebraska
May 20, 2005
Filed under Uncategorized
Tenneco Automotive, Lake Forest, Ill., intends to move its muffler and exhaust system operations supplying Harley-Davidson from a facility in Salinas, Calif., to its Seward and Lincoln, Nebraska facilities. The proposed move would take place over the next 15 months and impact roughly 190 employees currently employed at the Salinas plant.
Tenneco officials say the proposed move is the result of evaluating options for integrating Gabilan Manufacturing into the Tenneco Automotive operations. Gabilan, an exclusive supplier of mufflers and exhaust systems to Harley-Davidson, was purchased by Tenneco in February 2005.
“We regret the impact of this proposed move on the employees in Salinas,” said Mark Frissora, chairman and CEo of Tenneco Automotive. “We are committed to working with them and their union to make the transition as smooth as possible.
“It’s important that we continue to take steps to improve our operations worldwide. Our comprehensive evaluation of the Salinas operations showed that significant efficiencies could be achieved by moving production to our Nebraska facilities and consolidating engineering. We anticipate this proposed move would reduce costs and improve delivery time, quality and technical capabilities.”
With the move, engineering for Harley-Davidson product will occur at Tenneco’s North American emission-control engineering center in Grass Lake, Mich.; the manufacturing of muffler and other exhaust products for both OE and aftermarket customers will take place in Seward, Neb.; and plating for Harley-Davidson mufflers and exhaust systems takes place at the nearby Lincoln Plating in Lincoln, Neb.
The proposed production move would create approximately 90 new jobs at the company’s Nebraska facilities. Other former Gabilan Manufacturing facilities in Milwaukee, Wis. and Emgisville, Penn. would not be affected.
Tenneco Automotive is a $4.2 billion manufacturing company with approximately 18,800 employees worldwide. The company’s brands include Monroe and Walker, and products include Sensa-Trac shocks and struts; Rancho shock absorbers; Gillet, Walker and Quiet-Flow mufflers; and DynoMax performance exhaust products.