Company officials said the job cuts, which were made through attrition and not layoffs, are part of an adjustment of manufacturing output to declining demand among the major U.S. automakers. The drop in demand for vehicle components made in Reynosa is seen as a direct result of declining U.S. auto sales. In the case of Mexico, what that adjustment means is a lower employment level. As employees quit, went on to other things in their lives, we, basically, didn't replace them. Hissam said Delphi currently employs 7,070 people in Reynosa, down from 7,750 in October.
Employees there make electronic controls for instrument panels.
Employment at Delphi's 55 factories across Mexico has declined from approximately 81,000 in July down to 73,000, Hissam said. And more jobs are likely to be eliminated in the coming months as employees resign or change jobs. Delphi said last week that it will cut 11,500 jobs from its global workforce, including 3,900 outside the United States. General Motors, Ford and DaimlerChrysler all reported lower U.S. auto sales in March. U.S. sales were down last month for the sixth consecutive month, according to published reports.