Local engine plant to lay off 290
Thursday, June 05, 2008
MORAINE — DMAX Ltd. said Thursday, June 5, it plans to permanently lay off 290 hourly workers at its diesel-engine plant here, a repercussion from General Motors Corp.'s previously announced plans to slash production of trucks and vans.
The layoffs, a 28 percent reduction in hourly staff, would become effective July 14, the company said.
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DMAX employs more than 990 hourly workers and more than 170 salary workers at the Moraine factory, said Courtney Strickler, a company spokeswoman.
While the cuts announced Thursday do not include salaried workers, the company also will lay off some salaried employees, though it hasn't determined how many, Strickler said.
The 540,000-square-foot plant at 3100 Dryden Road makes 6.6-litre Durmax engine for heavy-duty trucks and vans. DMAX officials attributed the cuts to reduced demand for these types of vehicles.
The catalyst for the job cuts is production cuts at GM plants in Pontiac and Flint, Mich. In April, GM announced plans to cut one shift at each of these factories because the company was selling fewer of the vehicles made at these facilities.
GM owns 60 percent of the plant as a joint venture with Isuzu Motors Limited, which owns 40 percent.
The moves announced Thursday will not affect DMAX's plans to make $69 million in changes to the plant so it can produce a 6.6-liter, V-8 turbo diesel truck engine that meets stricter federal emissions requirements in 2010.
