Fayette County’s largest private employer plans to close its manufacturing operations by the end of 2009, resulting in the loss of approximately 500 production-related jobs, a company spokesperson confirmed Friday afternoon.

Panasonic Automotive Systems of America will keep its headquarters and product development operations at its Peachtree City campus to the tune of roughly 600 jobs, said spokesperson Jim Reilly.

But there will be an additional reduction in force of 40 “support” jobs that are non-manufacturing related, most of which are in Peachtree City though some are at PASA’s Southfield, Mich. location, Reilly said.

Panasonic has felt the pinch of the downturn in the auto industry and is consolidating its manufacturing operations at its plant in Reynosa, Mexico. The Peachtree City plant produces in-car entertainment systems and information systems such as navigation.

The company currently has roughly 1,100 employees in Peachtree City, ahead of the county’s next-largest employer, Piedmont Fayette Hospital with 930.

Affected employees will receive severance benefits and pay in accordance with company policies and career transition assistance will also be offered to them, Reilly said. The company will also work with the Georgia Department of Labor to help them find new jobs, he added.

The production shift to Mexico is part of a regional production change that is seen as necessary to keep PASA as a viable company in the competitive automotive market, Reilly said.

“We think it will position the company for the recovery of the U.S. economy in a globally competitive environment,” Reilly said.

Reilly cited the slowdown in the auto industry along with higher gas prices and the credit crunch as factors affecting the company’s decision. The change will allow the company “to better serve our customers,” Reilly said.

Panasonic was named a General Motors supplier of the year in April as its rear seat entertainment systems were featured in 24 GM vehicles. It also won the J.D. Power award for rear seat entertainment usage and satisfaction study in 2007 for the fourth year in a row.

PASA is a division of Secaucus, N.J. based Panasonic Corporation of North American, the principal North American subsidiary of Matsushita Electric Industrial Co. Ltd. of Osaka, Japan.