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Automobile industry

TRW Inc.'s Valve Manufacturing Plant Seeks Turnaround with General Motors Contract

Strategic Insights

— 1 min read

A significant contract between TRW Inc.'s valve manufacturing plant in Cleveland and General Motors Corp. could be a major turning point for the facility, which has been struggling with declining employment and production in recent years. The contract, announced by TRW's Vice President and General Manager Jack Stinnett, will see the company supply engine valves to GM, with production initially taking place at GM's AC Delco Systems valve plant in Flint, Michigan. The unique arrangement will eventually shift to TRW's own plants, including the Cleveland facility.

Key Takeaways:

  • TRW Inc.'s valve manufacturing plant in Cleveland has a contract with General Motors Corp. to supply engine valves, which could bring work to the plant and help it recover from recent declines in employment and production.
  • The contract will initially be produced at GM's AC Delco Systems valve plant in Flint, Michigan, with production shifting to TRW's own plants after two years.
  • TRW has invested in improving the Cleveland plant's production machinery over the past several years, and the company's Vice President and General Manager Jack Stinnett is working with the United Auto Workers to improve operations and management/labor relations.
  • The agreement also calls for the Cleveland plant to provide backup production for the Flint operation and to supply forgings to the Flint plant for finishing.
  • The plant has been struggling with declining employment, having employed 1,000 workers as recently as 1989, according to the United Auto Workers Union.
  • TRW won the contract in a competition with Cleveland-based Eaton Corp., a major valve maker.

Statistics:

  • TRW Inc.'s valve manufacturing plant in Cleveland employed 620 workers as of the article's publication date.
  • The plant has lost valve production and employment in recent years, having employed 1,000 workers as recently as 1989.

Sources:

  • Crain's Cleveland Business
  • United Auto Workers Union
  • General Motors Corp.
  • TRW Inc.

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