Iowa City plant to layoff nearly 500 workers by end of year

Published: Oct. 20, 2016 at 3:12 PM CDT
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International Automotive Components is reducing its work force in Iowa City by nearly 500 workers between now and the end of the year, according to a company spokesman.

David Ladd said the company will go from 600 hourly workers to just 160. IAC is also reducting its salaried workers from 76 to 39.

Ladd said the layoffs are due to a downturn in business with automotive companies. The Iowa City plant makes numerous products for the Dodge Dart, which Fiat Chrysler is phasing out. IAC made the interior instrument panel, door components, and the center console for the Dart.

Fiat Chrysler is also moving the manufacture of the Jeep Compass and Patriot vehicles out of Illinois, placing it outside the shipping radius for IAC's Iowa City plant. The company made dashboard and instrument panels for those vehicles.

Ladd said IAC hasn't been able to find anything to replace that business at the Iowa City plant. And because the automotive industry works on a 3 year cycle, IAC doesn't see any new business coming into Iowa City in the foreseeable future.

The Iowa City plant will continue to make parts for General Motors, Ford, Chevrolet, and Hyundai.