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GM lays off 560 workers to retool Romulus engine factory

Romulus engine plant will stay closed until late 2015.


June 10, 2013
by The Canadian Press

DETROIT – General Motors (GM) is laying off 560 workers while it retools an engine plant near Detroit to build a new motor.

GM says layoffs at the Romulus, Mich., factory will start in August and run to late 2015. The company is rebuilding the inside of the factory to make a new, more efficient V-6 engine.

The plant now builds several V-6 and V-8 motors for trucks as well as industrial and marine uses.

When the $390 million upgrade is finished, the plant will make only V-6s.

During the layoffs, about 430 full-time workers will get unemployment and supplemental pay worth about 75% of their wages. Another 130 temporary workers will lose their jobs.

GM announced the retooling in 2011. About 120 skilled employees will stay while the work is done.

©The Canadian Press