AM General announces layoffs

by John Paul (jpaul@wsbt.com)

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AM General will lay off 80 employees at its Hummer H2 plant in Mishawaka. (WSBT file photo)

By Beth Boehne

Story Created: Aug 28, 2008 at 10:42 AM EST

Story Updated: Sep 1, 2008 at 1:03 PM EST

MISHAWAKA — WSBT News has learned AM General plans to lay off 80 workers at the Hummer H2 plant in Mishawaka.

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AM General Spokesperson Craig Mac Nab says the layoffs should happen over the next 2 to 3 weeks.

"We tried very hard to not have this happen," said Mac Nab. "We regret the fact that we can't find openings for everybody, there will some people laid off."

AM General produces the H2 for General Motors.

Earlier this summer, the plant announced it would reduce the number of H2s it was producing daily from 52 to 35 after Labor Day because of GM cutbacks. Now, that number is being further reduced to 25.

"They've (General Motors) come back with a second reduction and said, 'No, we changed our minds,'" said Mac Nab. "We want you to make a further reduction that would take us to 25 a day."

Hummer sales are down more than 40 percent for the first half of the year, when compared with the same period last year.

GM announced in June that it would review the Hummer brand — known for its huge, rugged vehicles that come with poor fuel economy — for potential sale in an era of $4 per gallon gasoline.

Stay with WSBT.com for updates.

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