Updated: 11/18/2009 11:22:19 PM
When the economy started to slide, DENSO Manufacturing Tennessee, Inc. wanted to avoid layoffs, so the company cut back salaries and hours instead.
Now the Maryville business looks forward to better times ahead.
"We are cautiously optimistic," DENSO Senior Manager Bob Booker said.
Increased demand for car components is driving up production, restoring cut pay and cut hours for hundreds of workers.
"Our salaried associates who have been at a 5% pay cut, their pay will be restored to 100% as of January 1, 2010," Booker said.
DENSO makes components for cars including alternators, starters, and electronics. Increased demand for those parts allowed the company to not only restore cut pay for 700 salaried workers but also return 1,800 hourly workers to 40-hour work weeks in July.
"Many of those associates are currently working overtime as the demand for products increases," Booker said.
He credits a government program for jump starting demand.
"Of course 'Cash for Clunkers' was part of that, but we have seem some growth following that program," Booker said.
'Cash for Clunkers' also revved up sales at local car dealerships.
"It took our inventory down to nothing. Most dealerships were blank lots on new cars for a couple, three months," Gary Christian said. Christian is the new car manager at Rick McGill's Airport Toyota.
Christian said he's not surprised DENSO is ramping up production because Toyota is producing more cars, and folks at the dealership are selling them.
"Business is not what it was two years ago or even earlier than that, but it's coming back. Every day gets a little bit busier, we get a little bit more traffic," Christian said.
Business growth helped DENSO reward its workers who accepted cuts when business was down.
"All of our associates at DENSO work hard, and they do a really good job, so when the business conditions enabled us to do that, we wanted to get them back to that level we feel like they've earned and deserved," Booker said.
