Penske to close Riverview location, lay off more than 100 workers
Company says loss of bid with Ford is to blame
DETROIT – Penske is laying off more than 100 workers in metro Detroit.
According to a letter obtained by Local 4, 183 employees at the company's Riverview location on Dix Toledo Road will be laid off.
"Due to the unexpected loss of a fair market bid, the Penske MSC will no longer be providing Ford with certain transportation services, and will permanently cease operations," the letter states.
The business will close on Sept. 20.
The letter, signed by the manager of senior operations, was sent to the state's Department of Labor on Tuesday.
Spokesman says most expected to still have job
Penske Logistics spokesman Alen Beljin said most of the 183 employees are expected to keep their jobs under a new contract.
"At this point we expect 161 UAW Local 600 jobs to be transferred over to the new contract provider in September," said Beljin. "As for the 22 remaining jobs, those are non-union jobs. Penske Logistics is working to see if they can get placed locally."
Penske Logistics is a subsidiary of Penske Truck Leasing, which is based in Reading, Pa. It's a partnership among Penske Corporation, Penske Automotive Group and General Electric Capital Corporation.
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