Story Created:
May 5, 2009 at 12:15 PM EDT
Story Updated:
May 7, 2009 at 1:28 PM EDT
COLUMBUS, Ind. (AP) — Chrysler's production shutdown and weak demand from other customers is causing Cummins Inc. to lay off about 700 workers, most from the temporary closing of a southern Indiana plant that makes diesel engines for Dodge Ram pickup trucks.
Columbus-based Cummins said Thursday it expected to lay off about 610 workers this month from its Columbus MidRange Engine Plant and about 100 hourly workers from other nearby plants.
Cummins plans to close the plant effective May 15 until Chrysler resumes pickup truck production. Cummins said it expected the shutdown to last at least four weeks.
"The engines we produce for Chrysler make up virtually all the demand at CMEP, and without the Chrysler production it is not economically feasible to operate the plant," said Jim Kelly, Cummins' engine business president.
The company had cut production at the plant to just two days this week following Chrysler's shutdown. Cummins plans to move about 80 others who work at the plant in Walesboro, just outside Columbus, to other jobs within the company.
The announcement is the latest in a string of layoffs from the engine maker. Cummins has cut more than 2,000 jobs worldwide since the beginning of the fourth quarter 2008. It has also cut contract and temporary workers, halted hiring, closed facilities and frozen salaries for professionals, among other cost-cutting steps.
Cummins cited continued weakening demand for engines and components for new layoffs in June at three other southern Indiana plants.
The company plans to lay off about 60 workers from two Columbus plants and about 50 from a plant in nearby Seymour.