Division (HED) of the Automotive Supplier crowd of the Wriston Manufacturing Corporation,
scrutinized one more time the P&L expect for the Detroit compriseâ€"part of a lengthy report on the
future of the localize which had been prepared by a parturiency force Sullivan had appointed six months
earlier. Sullivan had joined the incision in 1988 as division controller, and for several age had
watched the plant fulfill at a level well below division expectations. In addition, he sensed that the
plant had lost its spirit. all over the years, products with growth potential had been transferred to new
plants and with them had gone investment dollars and management talent. For the historical 20 years, a
plant engineer said, people have been expecting the plant to close.
The Detroit plants sales were expected to remain in the $35-40 million range, and the task
force had concluded that at best a break-even operation is expected for at least five years if the
operation is left as is.
Sullivan noted, On the first cut, it looks desire we cannot achieve an acceptable
level of profitability at Detroit even if we raised(a) prices and cut hourly wages. With the Detroit
facility now his direct responsibility, Sullivan felt it important to address the problem. He did not
believe that the existing plant was possible in the long run; in the shorter run, however, he saw three
major alternatives:
1. Close the plant as in short as possible and transfer its products to other plants.
2. Invest in plant tooling in an attempt to develop a viable operation for at least the
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