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Eaton County Company Makes Huge Cuts Save Email Print
Posted: 5:23 PM Aug 5, 2008
Last Updated: 12:58 PM Aug 6, 2008
Reporter: Lauren Zakalik
Email Address: lauren.zakalik@wilx.com

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"We've been standing around all day, just waiting," says 22-year Von Weise veteran Val Anderson through tears. "Today they'll announce it. We're done."

Anderson describes it as a pit in the bottom of her stomach: reading a letter delivered to all 212 Von Weise employees at their homes Monday, confirming their worst fears.

"It basically said yesterday they were gonna start laying people off if they didn't sell the company in two weeks, we were gonna be done," she says.

The WARN notice says it's unknown if operations at any of the manufacturer's three Eaton Rapids facilities will continue and layoffs may start this week.

But Von Weise management, speaking through Representative Mike Simpson, confirms the cuts have already begun.

"There are jobs terminations happening today," Simpson, of Liberty Township, says. "We're not sure how many people being let go."

This is a drastic turnaround for the company. It was just in April the company announced, along with the Governor and the Michigan Economic Development Corporation, they'd be taking advantage of tax incentives and bringing hundreds of jobs to Michigan. Those jobs now won't be coming.

The Governor in April had highlighted a $1.1 million tax credit for Von Weise; now, with that not happening, Mayor Jamie Davidson feels blindsided.

"Now it's all going the other way," he says. "This was a complete surprise."

Surprise or not, it hurts just the same.

"We're a big supplier for GM. It's been the trickle effect. It took a while, but it finally got us," says Anderson.

The Governor's office didn't comment except to say they would be disappointed if the company does in fact close down. Liz Boyd, spokeswoman for Governor Granholm, says the state does not pay companies tax incentives until they bring jobs to the state. However, Simpson says his office and Jim Epolito with the MEDC will be looking into whether or not Von Weise took any tax incentive money before bringing jobs here, as a pre-incentive, because if they did, the state will have to recover all those funds.

The company has not filed for Chapter 11 or bankruptcy, though that option still remains.

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Posted by: Anonymous on Aug 16, 2008 at 09:06 PM
i worked for von weise when it was von weise gear company and was in missouri not michigan, should had stayed in missouri and not move to mexico and michigan. the company was founded in 1952 in the st. louise area, it is too bad we don't anymore men like mr von weise and what a shame this country is coming to.

Posted by: Anonymous Location: Eaton Rapids on Aug 6, 2008 at 10:25 AM
While Von Weise could not deliver on keeping the company in the area, it was not due to lack in efforts on behalf of the CEO/President and staff. The CEO of the comnpany along with appropriate staff members quickly alerted Von Weise's owners, Sun Capital of Florida, when it realized the 2008 sales plan was going to be faced with more challenges than originally noted at the end of 2007. However, Sun Capital refused to provide Von Weise with additional money to get through this difficult year. Parallel paths were taking place to find a manufacturing partner to potentially take ownership in the company (or product segments) but didn't appeal to Sun and resulted in the announcement to close. This decision is most painful to several employees including the professional staff who worked feverishly hoping for positive outcome. While this is heartbreaking for the State of Michigan and City of Eaton Rapids, unfortunately, the people to talk to about the decision don't reside in Michigan

Posted by: J Location: JACKSON on Aug 6, 2008 at 10:07 AM
Alot of these so called import cars are built right here by Americans. Just another case of telling the people what they want to hear and dealing with the situation later. Good job Governess.

Posted by: Jimmy Location: Jackson on Aug 6, 2008 at 06:13 AM
Here we go again, Jennifer is doing nothing, but letting a company close and more families go without. Why lay off some let the upper management go, then they could keep the HARD workers. This state would be so better off with out Jennifer!!!

Posted by: chris Location: mason on Aug 6, 2008 at 12:48 AM
How can you be a veteran of a company when your only 22 yrs old, come on people. Obama 08' Union Yes / repsect and pay for hard work

Posted by: Resident Location: Eaton Rapids on Aug 5, 2008 at 08:12 PM
What do you consider an import car when much of the business at these plants was sent to Mexico years ago?

Posted by: Two Chevrolets Location: Lansing on Aug 5, 2008 at 06:25 PM
They should only layoff the people who drive import car's...

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