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PK USA alters business model

By HANNAH GUNNELL - hgunnell@shelbynews.com

PK USA Inc. vice-president Bill Kent told the Shelbyville City Council Monday that the company is redoing its business model after its primary customer, Nissan, had a rough fiscal year.

Kent said Nissan’s sales are down 99 percent and will cut over 12,000 jobs globally. Nissan will also reduce its product line by 10 percent.

“Right now, Nissan is struggling,” he said.

At one point, 75 percent of PK USA’s sales went to Nissan, he said. The lack of sales to Nissan has hurt the company’s profits.

“It’s cut us in half,” he said.

“We are sourcing other avenues of business in order to ensure our security, which in turn ensures our employees security,” he said.

PKA USA has laid off “minimal” staff, Kent said. He said they are trying not to lay off anyone else, so they have stopped hiring.

Kent said he wanted the council to hear the business update from him instead of on the news.

“In fairness to this council, since we’ve been partners now for 30 years, it’s important that you heard it from us – what has happened, and what we are doing about it,” Kent said.

Kent followed up Tuesday morning with an email to council members and The Shelbyville News stating, “the corporate approval for purchase of the capital equipment ($14.7M) for the Ford Bronco crossed my desk this morning. The investment will be made at the Shelbyville facility. The start of production is November 2020.”

The city council approved a conflict of interest form from a local firefighter.

William Marcum filed the form disclosing that he has a financial interest in a purchase made by the City of Shelbyville to Marcum Construction LLC. The city will employ the company for construction.

The city council postponed discussion over Resolution No. 2019-23, which would transfer funds from Racino to start a Rainy Day fund, to the next city council meeting to accommodate for the budget meeting that will take place Aug. 8.