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Eaton Closes Clutch Manufacturing Facility After Declining Demand

The company calls it a "permanent closure," but a final decision won't be made until after discussions with the factory's union.

On Nov. 5, Eaton announced plans to permanently close its clutch manufacturing facility in Auburn, Indiana.

The company told the Indiana Department of Workforce Development that 108 employees will be out of a job — primarily assemblers, shippers and material handlers. 

Eaton plans to close the doors in May 2021, but the layoffs will begin in late February. The plant makes angle spring clutches for heavy-duty truck transmissions. 

According to Eaton, demand for the transmissions is declining, so it is consolidating clutch manufacturing operations at a plant in North Carolina.

While the company calls it a “permanent closure," a spokesperson said Eaton would make a final decision after meeting with the factory’s union.

The company will reportedly offer severance packages, consultation on benefits, and outplacement assistance to some employees.

According to the Associated Press, Auburn Mayor Mike Ley hopes the workers find work at other factories in the Fort Wayne, Indiana, area.

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