Cummins Cuts Back Chrysler Production

May 14, 2009 04:28 AM

Cummins Inc. is temporarily closing the Columbus MidRange Engine Plant (CMEP) in Walesboro, Ohio as a result of Chrysler's decision to idle its manufacturing operations while it undergoes bankruptcy reorganization.

CMEP is the sole manufacturing site for the 6.7-liter turbo diesel engine used in the heavy-duty Dodge Ram pickup truck. The plant will be down until Chrysler resumes pickup truck production.

The shutdown affects approximately 690 workers at CMEP. Cummins will layoff approximately 610 hourly workers – 560 members of the Diesel Workers Union and 50 members of the Office Committee Union. The Company plans to redeploy as many of the 80 exempt employees in the plant as possible throughout its Southern Indiana operations. A small staff will be retained through the end of May to complete the shutdown process.

Cummins will also permanently layoff approximately 110 hourly workers in June at three locations in Southern Indiana.

The job reductions are in response to further weakening demand for engines and components as a result of the global recession.

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