Report: Caparo to cease MI operations

Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, Earnings/Financials

Back in 2009, OEM supplier Caparo Vehicle Components pledged to put $10.5 million back into its two plants in Novi, Michigan. That move was so warmly received by the state of Michigan that the company was awarded $1 million in tax credits over five years. The company got its credits in 2010, reports The Detroit News, and may have collected a credit in 2011, as well, although the Michigan Economic Development Corporation reports the proper paperwork was not filed with the state. Caparo had been trying to sell the company when a buyer backed out, forcing this latest move.

Just two years in, instead of securing nearly 400 jobs, the move by Caparo to permanently cease operations in Michigan will hit 270 workers. Caparo makes components like stampings and welded assemblies for automakers and suppliers. In addition to the closing plants in Novi, Caparo also has a much smaller operation in San Luis Potosi, Mexico, and while the MEDC is saying the tax credit didn't cost Michigan any money, there are still going to be workers out of jobs. Even so, Caparo will reportedly not be liable to repay the value of the credits.

Caparo to cease MI operations originally appeared on Autoblog on Thu, 09 Aug 2012 09:17:00 EST. Please see our terms for use of feeds.

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