Federal-Mogul Corp. has outlined a three-year restructuring plan is says is part of its global growth strategy to satisfy customer and market expectations, improving corporate performance, and expand in key growth markets. It indicated the restructuring could affect as many as 25 plants and reduce its global workforce by 10% by the end of 2008.
Specific restructuring steps have not been finalized.
Federal-Mogul supplies automotive components, systems, and modules original equipment manufacturers and the aftermarket. The company filed for Chapter 11 bankruptcy on October 1, 2001, as a strategy to separate its asbestos liabilities from the rest of its assets.
With respect to the restructuring plan, Federal-Mogul preliminarily estimated the costs and expenses related to it at $125 million to $150 million.
Chairman, president, and CEO Jose Maria Alapont stated: "Our focus for the future will be on improving our performance in mature markets and expanding in key growth markets to be better positioned to serve our customers with our leading technology and world-class portfolio of quality products and services. While these decisions are difficult, our drive for global profitable growth is dependent on implementing strategies that continue to strengthen our competitiveness and profitability in this market environment."