General Motors Co. (GM:US), which is investing $390 million at a Michigan engine plant, said it will lay off 430 workers as the factory is shut down for retooling.
The Romulus plant near Detroit will make a new, more fuel-efficient V-6 engine once work resumes in late 2015, Robert Wheeler, a GM spokesman, said today in an e-mailed statement.
“Our employees know this was coming for a while and that it will require them being laid off during that period,” he said. The 430 permanent employees will be furloughed in different phases beginning in August, he said. Detroit-based GM said it also has 130 temporary employees that it has no obligation to retain under its United Auto Workers contract.
GM has said it plans to invest $1.5 billion in North American facilities this year as the automaker introduces about 20 new or refreshed vehicles to increase sales, gain market share and boost profits.
GM gained (GM:US) 1.7 percent to $35.03 at the close in New York. The shares have gained 22 percent this year, compared with a 15 percent increase for the Standard & Poor’s 500 Index.
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