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DMAX to suspend production for seven weeks

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By Thomas Gnau, Staff Writer Updated 1:21 PM Wednesday, April 29, 2009

MORAINE — The DMAX truck engine plant is ceasing production for seven weeks, a plant spokeswoman said today, April 29.

The plant’s 563 employees will be laid off for that time, said Courtney Strickler, DMAX spokeswoman.

The decision is tied to General Motors Corp.’s announcement last week that the automaker is scheduling down weeks at 13 assembly operations in North America. Under GM’s plan, some 190,000 vehicles will be removed from GM’s North American production schedule in the second and early third quarter this year.

GM plants in “Pontiac, Flint (Mich.) and Wentzville (Mo.) are our customers, and they’re making adjustments,” Strickler said.

GM said its downtime will help cut U.S. dealer inventory to a level of about 525,000 vehicles by the end of July.

The DMAX plant off Dryden Road makes engines for heavy-duty trucks, vans and ambulances. The plant has 420 hourly employees and 143 salaried employees.

Strickler said the suspension will begin May 16, with normal operations resume July 6.

Early last year, GM announced a $69 million investment into the plant to fit it for production of diesel engines that meet federal air quality standards. Strickler said that investment has not been derailed.

“It’s still going forward,” she said.

DMAX employees were told this morning of the plan, Strickler said.

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