The company is returning to its Warren roots as part of an effort to cut costs.
By CYNTHIA VINARSKY
VINDICATOR BUSINESS WRITER
WARREN -- Delphi Packard Electric Systems is citing cost savings and improved efficiency as its top reasons for relocating its World Headquarters from Belmont Avenue in Liberty Township to Dana Street in Warren.
There's a bit of history to the move as well -- the company got its start in Warren as the Packard Electric Co. in 1890.
Officials said the decision to move 154 salaried employees to offices closer to Delphi's manufacturing plants in Warren is in line with Delphi Packard's effort to control costs and improve bottom-line performance at all its locations worldwide.
The company had been leasing its 43,500-square-foot office headquarters at 4944 Belmont Ave. since 1992 when it moved out of Warren because of space constraints. The company said it has entered sub-leasing agreements for some parts of the Liberty building and is looking for more.
Moving to Warren
Most of the relocated employees are moving to Delphi's 120,000-square-foot Dana Street administration facility and to its North River Road Engineering building in Warren. Others are moving to its Youngstown Road Technical Center and its Warren Distribution Center.
Plans began 18 months ago, and the move should be completed by the end of this month.
Division president Jim Spencer is part of the group moving to Dana Street. Other departments relocating include public relations, human resources, global finance, global quality and mergers and acquisitions.
& quot;Consolidations play a critical role in strengthening our financial viability," said Steve Duca, engineering director, explaining that the money saved on lease payments can be better used to meet the company's business plan objectives.
The consolidation will also improve efficiency. "It simply makes good business sense to identify and capitalize on opportunities to drive down our costs through consolidation, and to use existing space more efficiently, & quot; Duca said.
Last year, Delphi Packard consolidated or closed 51 manufacturing facilities, warehouses, supply in line sequencing centers and administrative offices to cut costs.
Delphi is one of the Mahoning Valley's largest employers, with about 6,500 workers here. The company employs about 200,000 around the world.
Packard's work force has been falling with the retirement of older workers. About 730 hourly workers retired in 2001, and about 1,600 are eligible to retire next year.