AM General lays off workers

Posted on : 16-05-2010 | By : Joshua Parker | In : Credit Cards Articles

Tags: Am General, General

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SOUTH BEND –– AM General began laying off more than 50 employees Sunday at its Mishawaka plants.

Company spokeswoman Celeste Ross confirmed the layoff Tuesday.

It is believed the company laid off well over 50 workers and salaried employees. The number laid off is believed to be less than 100.

“What we are doing now is adjusting our workforce to meet our customers’ needs,” Ross said. “That decrease in volume translates to a decrease in workforce.”

In December and January, the company laid off about 250 workers. The layoffs this week are in addition to those numbers, Ross said.

The company no longer builds the Hummer, which had been offered for sale by General Motors.

It now appears no company will buy it after Sichuan Tengzhong Heavy Industrial Machinery Corp.’s effort fell through earlier this year. GM already has begun the wind-down process for the brand.

The company did get a bit of good news Wednesday, though it was expected.

AM General was awarded a $54.3 million contract to add 500 Humvees to an existing contract.

The estimated completion date is Dec. 31 of this year. It is part of an original order calling for 2,620 Humvees to be built through the first quarter of 2011.

The company also is expected to begin building a handicapped-accessible cab in the adjacent Hummer H2 plant later this year for the Vehicle Production Group.

UAW Local No. 5 did not return a call from the Tribune seeking comment.

Staff writer Jim Meenan:
jmeenan@sbtinfo.com
(574) 235-6342