July 3, 2008 / 4:24 PM / 12 years ago

Canadian auto parts supplier slashes 2,000 jobs

TORONTO, July 3 (Reuters) - Canada’s automotive industry sustained another blow on Thursday when Progressive Moulded Products Ltd. said it was slashing 2,000 jobs across the company, mostly at 11 Canadian facilities in the province of Ontario.

Progressive Moulded, which makes plastic automotive gear, filed for court protection two weeks ago.

The bulk of the privately held company’s 2,800 work force - 2,400 of them in Canada — is spread around 11 operations in the Toronto area, with the remainder in three facilities in Michigan, Missouri and Texas.

Michael Daniher, a company spokesman, says Progressive Moulded cannot rule out additional job cuts, considering the precarious state of the auto industry.

“Between 80 and 90 percent of our annual sales revenue would be attributed to the Detroit Three,” Daniher said.

“The company is still operating under the court-supervised restructuring process, so I imagine the court will have some say in determining where things go from here”.

The job cuts announced on Thursday came a day after General Motors of Canada (GM.N) and Ford Motor Co. of Canada (F.N) released disappointing sales figures for June.

In the United States, auto sales dropped in June to a 15-year low as record-high gasoline prices triggered a plunge in sales of light trucks and sport utility vehicles.

Last month, General Motors Corp said it was closing its Oshawa, Ontario, truck plant, eliminating as many as 2,600 jobs.

Earlier this week Chrysler LLC [CBS.UL] said it plans to close a minivan plant in Missouri, where Canada’s Magna International MGa.TO operates a facility that builds seats for the Dodge Caravan.

Reporting by Lionel Perron; Editing by Frank McGurty

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