General Motors cutting about 160 jobs at Kokomo plant

KOKOMO, Ind. (AP) — General Motors says about 160 jobs are being cut from a plant in Kokomo, Indiana, after the automaker announced it would stop producing semiconductors there by mid-2017.

Detroit-based GM said in a statement that employees were notified last week about the decision, which will affect about 100 hourly and 60 salaried employees. The Kokomo Tribune reports the facility’s workforce will drop to around 600 after the layoffs.

Kevin Nadrowski, a plant communications manager for GM, says current production volumes of semiconductors had stopped making a profit.

The Kokomo plant made and tested the semiconductors, which are used in a wide range of automobile systems. The plant will still make integrated circuits, air bag control modules, engine control modules and other parts for GM and other automakers.

The announcement comes a week after GM said it would lay off more than 2,000 workers indefinitely at two assembly plants in Ohio and Michigan starting in January amid shifting demand from cars to trucks and SUVs. The company said it will suspend the third shifts at factories in Lordstown, Ohio, and in Lansing, Michigan, because of the market change, which is growing and shows no sign of abating.

 

Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.