JUNE 30, 2021 BETRAYAL AT FREIGHTCAR AMERICA?
Investigative journalists at ProPublica have reported that the company had taken a $10 million in Paycheck Protection Program Loan meant for payroll expenses during the pandemic.
The allegation is that the company used the funds to keep their Shoals manufacturing facility in Muscle Shoals, Alabama operational in preparation of plant closure and a transfer of operations to the company’s new facility in Castaños, Mexico.
“Jim Meyer, FreightCar America’s CEO, told ProPublica in an email that he had not intended to shutter the plant when he received the PPP money, and that it had allowed the company to keep workers on the job through most of 2020 despite a sharp dropoff in new orders.”
“The efforts of our Shoals' team helped us to reduce our breakeven production levels by roughly one-third since the start of the plan," CEO Jim Meyer said. "However, the ongoing impact of the industry downturn has been further intensified by the COVID-19 pandemic and required an additional and significant response to both protect our franchise and reposition the business for immediate success post-downturn.”
JULY 31, 2019 — Original post
Chicago, Illinois-based FreightCar America, a designer, manufacturer, and lessor of specialized railcars, has announced that they are realigning their manufacturing capabilities which will result in the permanent closure of its Roanoke, Virginia railcar manufacturing facility by the end of 2019. The realignment will result in 200 permanent layoffs commencing on September 20, 2019.
According to a statement by Jim Meyer, President and Chief Executive Officer of FreightCar America, “The closure of our Roanoke facility is another next step in our ‘Back to Basics’ strategy as we continue to streamline our manufacturing footprint and match it to our future product offering, Reducing our fixed costs and achieving world-class output from our much larger Shoals facility have always been core pillars of our turnaround strategy.We have spent the last two years building our talent, processes, and overall capabilities at Shoals and the plant is now in a position to accept the Roanoke models and volume. This action, when complete in the first half of 2020, is expected to save approximately $5 million per year. Our people at Roanoke have consistently performed above all expectations. We are extremely thankful for everything they have given the Company.”
The Shoals facility is a state-of-the-art railcar manufacturing plant located in Cherokee, Alabama.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?