GM Kokomo to lay off 160 workers

Published:
Updated:

KOKOMO - The General Motors plant in Kokomo announced 160 layoffs Tuesday.

The facility will cease semiconductor production by mid-2017, affecting about 100 hourly and 60 salaried employees. Currently, about 755 employees work at GM Kokomo.

Following the layoffs, about 600 jobs will remain at the site.

GM says current production volumes do not support a profitable operation, and the technical capabilities of the current equipment set does not allow the business to compete at a global level. GM also says it is cost prohibitive to invest in new equipment to produce semiconductors in GM Kokomo due to the available capacity and capability of existing suppliers to meet demand for semiconductors.

"As a result of the decision, all UAW/GM employees who currently work at the site will be treated in accordance with applicable provisions in the UAW Local and National Agreements. We will similarly be identifying opportunities and options for affected salaried employees in the upcoming months," GM said.