Dec. 2--Car and truck suppliers across the state will have much at stake when Congress decides how to handle Detroit's struggling auto industry.

The N.C. Commerce Department says more than 160 companies in the state employ more than 17,000 workers who make parts for cars, trucks and heavy equipment.

Many of the plants already are feeling the crunch.

ASMO North Carolina, which makes motors used in power windows and air conditioners, is closing plants in Thomasville and Mount Airy early next year. The closings will reduce the company's work force by 202 jobs.

"We're trying to hold down expenses and survive," said David Clifton, a company spokesman. "I don't see a turnaround until late 2010 or 2011. It all depends on what Congress does for the Big Three."

Washington lawmakers are considering a $25 billion rescue plan for Chrysler, Ford and General Motors. The automakers have said the sagging economy is causing huge losses in revenue. Congressional leaders denied a bailout last month but told automakers to return this month with a specific plan to revamp the auto business.

Guilford Performance Textiles, which makes fabrics for car interiors, is cutting 115 jobs by closing a plant in Fuquay-Varina.

Richard Evans, a spokesman for Goodyear Tire & Rubber Co. in Fayetteville, said the plant is not affected by automakers because it makes replacement tires rather than original equipment tires. Still, the troubled economy led the company to close for two weeks in August to save money. The plant employs about 3,000 workers.

Purolator, which makes oil and other filters at its Fayetteville plant, has about 825 employees. The plant produces original equipment for Ford and Chrysler as well as for the replacement market. A company official did not return a call for comment about how the economy is affecting the plant.

The automobile industry is one of the country's largest sectors.

A report issued last month by the Center for Automotive Research said the motor vehicle and parts industries employed 732,800 workers through September. It also said a major decline in employment and production in Detroit is probable in the next 12 months.

A 50 percent reduction in orders to the Big Three suppliers would cost almost 500,000 jobs nationwide and a loss of $86 billion in personal income during the next two years.

General Motors announced a $2.5 billion loss last quarter and said it is running out of money.

Foreign automakers with U.S. plants also are feeling the effects. Toyota has suspended production of its Tundra pickup and Sequoia sport utility vehicle.

AW North Carolina, a Durham company that makes transmissions for Toyota, has seen a drop in orders and has reassigned some workers to other projects, such as quality control and safety.

Kathy Neal, an assistant secretary at the state Commerce Department, said North Carolina ranks 10th among states with automobile-related job sectors. The state is doing what it can to protect those companies, she said.

"We have been helping that industry as a whole, helping it so it can have a better chance of surviving in bad times," she said. "It's a broad industry, and it's an important industry to North Carolina."

Neal said the Commerce Department frequently calls plant officials to see how they are being affected. The state helps market new businesses and expansions with incentives and provides work-force training through community colleges.

Neal said not all of the vehicle-related industries are suffering, particularly those without Detroit connections.

"Our business is doing well. We're not really affected by the auto industry," said Terry Williams at the ArvinMeritor plant in Laurinburg. The company makes transmission and drive-train assemblies for heavy trucks and military vehicles.

Staff writer John Fuquay can be reached at fuquayj@fayobserver.com or (919) 828-7641.

-----

To see more of The Fayetteville Observer, or to subscribe to the newspaper, go to http://www.fayettevillenc.com/.

Copyright (c) 2008, The Fayetteville Observer, N.C.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NYSE:GM, NYSE:GT, NYSE:TM, NYSE:ARM,

A service of YellowBrix, Inc.